Poultry Farm Business Plan Template

Poultry Farm Business Plan

You’ve come to the right place to create your Poultry Farm business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Poultry Farms.

Below is a template to help you create each section of your Poultry Farm business plan.

Executive Summary

Business Overview

Smith Poultry Farm is a new farm business located in Mason City, Iowa. The business is a newly established farm founded by John and Sue Smith. As native Iowans, the couple has spent their life in the farming industry as their families have established farms throughout Iowa. Currently, there is a poultry shortage throughout the midwestern United States as some farms have been forced to shut down their business due to rising costs, labor shortage, and higher technology standards. John and Sue have decided to take this opportunity to alleviate the poultry shortage as well as finally establish the farm they have been planning to do for the past six years.

As native Iowans, John and Sue have already recruited a team of farmhands that have extensive experience working in poultry farms. Most of them have been recently laid off from other poultry farms that have shut down their operations.

John and Sue plan on starting with 5,000 chickens, 500 turkeys, and 100 ducks on 10 acres of land. Their business operations will be centered around daily processes and procedures to tend to the chickens and prepare them for packaging for resale and distribution.

 

Product Offering

The following are the products that Smith Poultry Farm will provide:

  • Chicken for consumption
  • Eggs
  • Breeding
  • Turkey for consumption
  • Ducks for consumption

 

Customer Focus

Smith Poultry Farm will target all residents residing in northern Iowa and throughout the state. They will target families, individuals, supermarkets, large retail chains, and restaurants.

 

Management Team

Smith Poultry Farm will be owned and operated by John and Sue Smith. They will recruit a very experienced and knowledgeable operator to manage the day-to-day operations of the poultry farm.

John Smith was born and raised on a local farm and has been working in farms most of his life. He left to pursue his agriculture degree from Iowa State and returned to work full-time at his father’s large farm. That farm produces beef, poultry, pork, and vegetables. Once he married Sue, the couple decided that they would begin to save up to pursue a farm of their own.

Sue Smith was raised on a farm as well. Once she graduated from high school, she attended Iowa State to pursue a degree in Business Administration. It was there where she met John and planned for their future farm where he would manage the farm operations and she would be in charge of the financial management and administration of the poultry farm operations.

 

Success Factors

Smith Poultry Farm will be able to achieve success by offering the following competitive advantages:

  • Ownership has extensive experience and knowledge in the poultry farming industry.
  • Owners will invest in the latest technology and equipment to make their poultry farm the most superior in the Midwest.
  • Smith Poultry Farm will breed high quality chickens, turkeys, and ducks in order to produce the freshest and quality poultry.

 

Financial Highlights

Smith Poultry Farm is seeking $500,000 in debt financing to launch its property management business. The funding will be dedicated towards securing the farm land and purchasing the necessary equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, mortgage, and marketing costs for the poultry farm. The breakout of the funding is below:

  • Purchase 10 acres of farmland: $100,000
  • Farm equipment, supplies, and materials: $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $50,000
  • Working capital: $100,000

The following graph below outlines the pro forma financial projections for Smith Poultry Farm.

 

Company Overview

Who is Smith Poultry Farm?

Smith Poultry Farm is a new poultry farm business located in Mason City, Iowa. The business is a newly established poultry farm founded by John and Sue Smith. As native Iowans, the couple has spent their life in the farming industry as their families have established farms throughout Iowa. Currently, there is a poultry shortage throughout the midwestern United States as some farms have been forced to shut down their business due to rising costs, labor shortage, and higher technology standards. Growing up in the farming industry, John and Sue have decided to take this opportunity to alleviate the poultry shortage as well as finally establish the farm they have been planning to do for the past six years. The couple plans to raise chickens, turkeys, and ducks to produce poultry for food consumption as well as eggs. Once the business is established, the couple will add more birds to the farm and purchase additional land.


As native Iowans, John and Sue have already recruited a team of farmhands that have extensive experience working in poultry farms. Most of them have been recently laid off from other poultry farms that have shut down their operations. John and Sue have already identified the lead farmhand who will assist John in the day to day farm operations oversight.

John and Sue plan on starting with 5,000 chickens, 500 turkeys, and 100 ducks on 10 acres of land. Their business operations will be centered around daily processes and procedures to tend to the chickens and prepare them for packaging for resale and distribution.

 

Smith Poultry Farm HistorySmith Poultry Farm is owned and operated by John and Sue Smith, Iowa natives who have extensive experience in farm operations and business administration. John has worked for his father’s large farm for most of his life and wants to finally pursue his own poultry farm since a number of poultry farms have ceased operations due to increased labor and distribution costs. John has already pursued a number of local grocery stores, large retail stores, and restaurants to have contracts to be their sole poultry distributor.

Since incorporation, Smith Poultry Farm has achieved the following milestones:

  • Registered Smith Poultry Farm, LLC to transact business in the state of Iowa.
  • Has 6 contracts in place to provide poultry for local restaurants, grocery stores, and large retail chains.
  • Reached out to numerous individuals and households to purchase their household’s poultry directly from Smith Poultry Farm.
  • Began recruiting a staff of farmhands to assist in the day to day operations of the poultry farm.

 

Smith Poultry Farm Products

The following will be the products Smith Poultry Farm will provide:

  • Chicken for consumption
  • Eggs
  • Breeding
  • Turkey for consumption
  • Ducks for consumption

 

Industry Analysis

 


Customer Analysis

Demographic Profile of Target Market

Smith Poultry Farm will target all residents of  Mason City and the surrounding states. The target market will consist of households, grocery stores, restaurants, and large retail chains.

The precise demographics for Mason City, Iowa are:

  • 503,642 residents
  • 310,000 households
  • 1,000 restaurants
  • 500 grocery stores
  • 6 large retail grocery stores

 

Customer Segmentation

Smith Poultry Farm will primarily target the following customer profiles:

  • Individuals and households
  • Grocery Stores
  • Restaurants
  • Large Grocery Chains


Competitive Analysis

Direct and Indirect Competitors

Smith Poultry Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Myson Poultry Farm

Myson Poultry Farm is a modern, multi-national, protein-focused food company that produces approximately 20% of the beef, pork, and chicken in the United States. Along with its subsidiaries, the company operates a food company worldwide. The company began during the Great Depression when the eldest Myson began selling chickens. A few decades later, Myson’s son grew it into the large company it is today and is one of the largest poultry producers and distributors in the world.

By investing in technology, Myson was able to grow the brand. Through the development of better feeds and better disease control methods, chickens were maturing more quickly. These improvements, combined with increased competition, meant lower prices for consumers and households were able to purchase their poultry products in larger quantities.

Iowa Poultry Farm

Iowa Poultry Farms started in the 1920s when Liam Nelson sold and traded eggs by the dozen as a means to put food on the table for his family. Four generations later, the Nelson family has grown the business year-over-year to continue to meet the changing needs of the egg and pullet industry. More than 90 years of experience has established Iowa Poultry Farm as a well-respected pullet and hatching business as well as a reliant commercial egg producer under the current leadership.

The strength of Iowa Poultry Farm began when master plans for growth from the late 1980s to present day have produced new and improved pullet production facilities that have the capacity to accommodate the growth of the majority of the pullets in NPF’s proprietary facilities. Recent capital development has been invested in hatchery and breeder facilities that have the capacity to produce up to 9 million female chicks per year as well as supplementary aviary growing facilities for both cage-free and floor-grown conventional pullets.

Iowa Poultry Farm continues to innovate as a pullet and hatching business under the leadership of Frank and his son, Brett.

Good Cluck Poultry Farm

Good Cluck Poultry Farm maintains more than 50,000 breeders on its company owned farms. The company currently hatches and sells 79 standard chicken breeds/varieties, 58 breeds/varieties of bantams, 9 breeds of ducks, 3 breeds of geese, and 4 breeds/varieties of guineas. In addition, Good Cluck has available, as a service to its customers, 9 heritage breeds of turkeys, pheasants, and chukar.

Good Cluck certainly has good luck. While many hatcheries have been forced to close, Good Cluck Poultry Farm has become a leader in producing non-commercial poultry annually, selling more than six million items of baby poultry.

Good Cluck’s full list of products are white egg layers, brown egg layers, colored egg layers, standard assortments, broilers, crested chickens, feather legged bantams, bantam assortments, clean leg bantams, ducks, geese, guineas, turkeys, pheasants, chukar, and supplies.


Competitive Advantage

Smith Poultry Farm will be able to offer the following advantages over their competition:

  • Ownership has extensive experience and knowledge in the poultry farming industry and has over 20 years of experience managing poultry farm operations
  • Owners will invest in the latest technology and equipment to make their poultry farm the most superior in the Midwest.
  • Smith Poultry Farm will breed high quality chickens, ducks, and turkeys in order to produce the freshest and quality poultry.

 

Marketing Plan

Brand & Value Proposition

Smith Poultry Farm will offer the unique value proposition to its clientele:

  • All farming practices will utilize the latest technology and equipment for safe breeding practices, production, and distribution of all farm animals.
  • The farm will only breed the highest quality poultry.
  • Unbeatable pricing to its clients and customers – Smith Poultry Farm does not mark up its poultry products at a large percentage. All poultry will be on par with competition.

 

Promotions Strategy

The promotions strategy for Smith Poultry Farm is as follows:

Word of Mouth/Referrals

John Smith has built up an extensive list of contacts over the years by living and working in the midwestern farming industry. Since a number of local poultry farms have ceased operations, they have committed to John that Smith Poultry Farm will be their poultry supplier. They trust his work ethic and commitment to the local community.

Professional Associations and Networking

Smith Poultry Farm will become a member of American Farmland Trust, Farming NGO, National Farmers Union, and the Iowa Chamber of Commerce. They will focus their networking efforts on expanding their client network and marketing their new brand.

Print Advertising

Smith Poultry Farm will invest in professionally designed print ads to display in programs or flyers at industry networking events.

Website/SEO Marketing

Smith Poultry Farm will hire a third-party marketing company to design their print ads and design their website. The website will be well organized, informative, and list all the poultry products they plan to offer. The website will also list their contact information and directions to the poultry farm. The marketing company will also include SEO tactics so that anytime someone types in the Google or Bing search engine “Iowa poultry farm” or “poultry farm near me”, Smith Poultry Farm will be listed at the top of the search results.

 

Zero po, hindi rin po kami mahilig malabas ng mga panood.

The pricing of Smith Poultry Farm will be moderate and on par with competitors so customers feel they receive value when purchasing their poultry products.


Operations Plan

The following will be the operations plan for Smith Poultry Farm.

Operation Functions:

  • John Smith will be the Owner and President of the company. He will oversee all staff and manage client relations. John, along with Sue, has spent the past year recruiting the following staff:
  • Sue Smith – will oversee all administrative aspects of running the poultry farm. This will include bookkeeping, tax payments, and payroll of the staff.
  • George Hargrove – Head Farmhand who will oversee the farming staff and day to day operations.
  • Ben Loya – Assistant Farmhand who will assist George.
  • Frank Johnson – Distribution Manager who will oversee the packaging and distribution of all poultry products.


Milestones:

Smith Poultry Farm will have the following milestones complete in the next six months.

1/1/202X – Finalize purchase of farm land

2/15/202X – Purchase farm equipment, supplies and materials

3/1/202X – Finalize contracts for grocery store, chain, and restaurant clients

4/15/202X – Begin networking at industry events

5/1/202X – Purchase initial set of poultry animals

5/15/202X – Hire and train farm staff

6/1/202X – Smith Poultry Farm begins farm operations

 

Management Team

Smith Poultry Farm will be owned and operated by John and Sue Smith. John will manage the oversight of all farm operations with the help of his lead farmhand. Sue will manage all administrative and financial aspects of the farm business.

John Smith was born and raised on a local farm and has been working in farms most of his life. He left to pursue his agriculture degree from Iowa State and returned to work full-time at his father’s large farm. That farm produces beef, poultry, pork, and vegetables. Once he married Sue, the couple decided that they would begin to save up to pursue a farm of their own.

Sue Smith was raised on a farm as well. Once she graduated from high school, she attended Iowa State to pursue a degree in Business Administration. It was there where she met John and planned for their future farm where he would manage the farm operations and she would be in charge of the financial management and administration of the poultry farm operations.


Financial Plan

Key Revenue & Costs

The revenue drivers for Smith Poultry Farm are the revenues it will receive from poultry products, eggs, and the breeding fees they will charge to individuals who have high-quality chicken, turkeys, or ducks they want to breed.

The cost drivers will be the overhead costs required in order to staff and maintain successful farm operations. The expenses will be the payroll cost, mortgage payment, utilities, farming supplies, equipment maintenance, and marketing materials.

 

Funding Requirements and Use of Funds

Smith Poultry Farm is $500,000 in debt financing to launch its property management business. The funding will be dedicated towards securing the farm land and purchasing the necessary equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, mortgage, and marketing costs for the poultry farm. The breakout of the funding is below:

  • Purchase 10 acres of farmland: $100,000
  • Farm equipment, supplies, and materials: $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $50,000
  • Working capital: $100,000


Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Poultry Animals: 5,600
  • Average Revenue per Animal: $20
  • Number of Poultry Products Sold Per Year: 1,000,000

 

Financial Projections

Income Statement
  FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329
Balance Sheet
  FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744
Cash Flow Statement
  FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Poultry Farm Business Plan FAQs

A poultry farm business plan is a plan to start and/or grow your poultry farm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your poultry farm business plan using our Poultry Farm Business Plan Template here.

There are a number of different kinds of poultry farms, some examples include: Breeder Farms, Broiler Farms, and Pullet Farms.

Production companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

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