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Prepared by
February 2020
OUR VISION
SABIU MAINASIBI FARMS will measure its success by its ability to achieve the
following objectives:
Becoming the "Best and most hygienic poultry producer in the area.
Turn in profits from the first six months of operations.
Maintain 50% gross margin ratio.
Winning the hearts and tastes of our beloved consumers
and establishing a brand image of the company through
heavy marketing campaigns in the first one year.
OUR MISSION
SABIU MAINASIBI FARMS missions are;
1. To provide customers with quality, fresh, and valuable products.
2. To respect all employees and enable everyone to have a say in
company affairs.
3. Quality and service are our number one priority.
4. To contribute to the community through physical and social
programs.
5. Sky limit's poultry farm intends to have the largest poultry farm
products.
6. We plan to increase and expand our production of chicken to
challenge the ever-growing demand for poultry products.
7. The nutritious and protein rich products from our farm would always
be the first choice of our consumers.
OUR OBJECTIVE
Our objective is to create a business model of improving company incomes and
nutrition through improvement and utilization of modern poultry production.
High population growth and growing income lead to increasing demand for
poultry products in Nigeria. The poultry industry has emerged as the most
commercialized and fastest expanding segment in the animal husbandry
subsector but still faces many problems. Private investment from foreign
countries could help to facilitate this market.
In 2013, six of the ten fastest growing economies in the world were in Africa.
With an average annual growth in gross domestic product (GDP) of 5% in recent
years, this situation is likely to continue (International Monetary Fund 2014). In
Africa, agriculture and agro-industries account for more than 30% of national
incomes on average, as well as for the bulk of export revenues. Nearly three-
quarters of the African population depend on agriculture to secure their
livelihoods.
Due to the high population growth in Africa (World Health Organization 2010)
and growing income, the demand for eggs and poultry meat has significantly
increased in recent years across large parts of the continent. According to
estimates by the USAID (United States Agency for International Development),
this trend is very likely to continue over the next few years. Therefore, the
consumption of poultry and eggs will increase by 200% between 2010 and 2020
for at least some countries in sub-Saharan Africa.
One African country where this trend can clearly be seen is Nigeria. Nigeria is
one of the largest countries in Africa, with a total geographical area of 923,768
square kilometers (Manyong et al. 2005). Its estimated population was 174.5
million people in 2013, and its population growth rate is 3% per annum (USDA
2013). Nigerian economic statistics reveal annual economic growth rates that
averaged over 7% in recent decades, making Nigeria one of the fastest growing
economies in the world (Byerlee et al. 2013). Nonetheless, this growth has not
reduced poverty or created much-needed jobs. Unemployment is still very high,
and more than 60% of the population lives below the poverty line (African
Economic Outlook 2012).
In contrast to the rapid population growth in Nigeria, food production has not
followed suit over the last 50 years (Wiggins and Keats 2013). Nevertheless, the
sector is particularly important in that it has generated employment and
contributed to GDP and export revenue earnings. Hence, agriculture constitutes
one of the most important subsectors of the economy, employing nearly three
quarters of Nigeria’s work force (Phillip et al. 2009; Adene and Oguntade 2006).
Despite these positive aspects, poultry production has not been keeping pace
with rapidly increasing domestic consumption. The domestic shortfall is
estimated at 25,000 MT per annum (Rothschild 2002).
This lagging increase in domestic production can be explained by the fact that
most producers in Nigeria still employ traditional rural poultry farming
systems—although an increasing demand for poultry kept under modern and
more hygienic conditions has been observed. Rural poultry farming is by
convention a subsistence system comprising stocks of nonstandard breeds or
mixed strains, types, and ages. A majority of the farmers operate in these
traditional, small-scale structures. Often, these farming systems are
characterized by outdated barn equipment and production techniques and
inadequate hygiene management. In addition, producers suffer from a weak
feed industry and poor market access as a result of inadequate infrastructure
(Adene and Oguntade 2006; Alabi and Isah 2002).
But even farmers using more commercial farming systems suffer from numerous
problems. These problems include a low capital base, the resulting lack of equity
capital, inefficient management, technical and economic inefficiencies, infection
with diseases and parasites, high costs for feeds, poor quality of day- old chicks,
To the best of our knowledge, there is hardly any literature so far that examines
the existing market structures of poultry production in Nigeria, analyzes the
potential of emerging new markets, and segments or explores the development
of suitable strategies for the market entry of companies from foreign countries.
Therefore, it is the aim of the present paper to contribute to the closing of this
research gap. To this end, we describe Nigeria’s economic development in
detail, taking into account general economic indicators and the relative
importance of animal husbandry. We pay special attention to the development
of the poultry sector, analyzing in depth the market in laying hens and egg
production, as well as the subsector of broiler production.
The Nigerian poultry industry comprises about 180 million birds – Nigeria has
the second largest chicken population in Africa after South Africa (SAHEL, 2015)
– producing 650 000 tonnes of eggs and 300 000 tonnes of poultry meat in
2013 (FAOSTAT, 2017). Cattle milk production amounts to 585 000 tonnes of
milk per year, that only covers 40 percent of the demand (ASL 2050, 2018). This
brief summarizes available information on how cattle and chicken production
contribute to people’s livelihoods in the different production systems, as
characterized by stakeholders (see Table 1). It relies on data from the Nigeria
General Household Survey (NGHS) 2015/16 of the National Bureau of Statistics,
a representative multi-topic household survey with a focus on agriculture. NGHS
data allows to determine income from different activities, production practices
and consumption patterns, shedding light on cash income and nutrition related
benefits from livestock.
Free-range system Farmers keep indigenous chicken flocks, which are left to roam
around and scavenge for food and water. Flocks contain birds
(extensive) of
different species and varying ages. There may be rudimentary
shelter,
though most birds roost outside in trees or nest in the
bushes.
Production is subsistence-oriented, mainly for family
consumption.
This system is present mainly in the northern regions of the
country.
Farmers in semi-intensive poultry systems keep flocks of about
Semi-intensive 50 to
2000 birds, including both improved and unimproved breeds. It
system refers
as small-scale family poultry keeping by house-holds using
family
labor and locally available feed resources, often complementary
to
other farming activities. Housing is not elaborate,
sometimes
wooden/metal cages are used to provide the chicken with
shelter and
Poultry (chicken)
Poultry production in Nigeria amounts up to 454 billion tonnes of meat and 3.8
million eggs per year, with a standing population of 180 million birds. About 80
million chicken are raised in extensive systems, 60 million in semi-intensive
systems and the remaining 40 million in intensive systems (ASL 2050, 2018). As
the NGHS is a household survey, data on commercial systems is limited, with
only three households in the sample reporting production practices that
correspond to the intensive system.
From the sample we estimate that the 78 million chicken in the extensive (free-
range) system are kept by 6.6 million households; the 68 million chicken in
semi-intensive systems are kept by 1.3 million households; and there are 17
thousand commercial holdings keeping 45 million chicken altogether. In the
sampled households, vaccination rate increases with intensification: only 4
percent of households vaccinate their animals among the free-range chicken
keepers; this ratio is 13 percent among semi-intensive holdings, and all intensive
holdings reported to vaccinate their birds.
Live sales
70%
60%
50%
40%
30%
Egg sales
consumption
Average gross
revenue from
chicken production
(NGN)
Extensive 4 513
Semi-intensive 33 697
Intensive 19 171 837
Market Segmentation
Although in the Nigerian populace, there are few taboos, religious or cultural
practices that will prevent the consumption of poultry produce, during the
market segmentation, we found out that nearly everybody eats eggs and meat,
Since the business will now be situated in Kano State, Kano Poultry Market is our
target market.
WEAKNESS
OPPORTUNITIES
Market demand
Expansion into large scale production of byproducts(fertilizer and
detergent)
Export to neighboring towns
A large and successful poultry will ensure food security
THREATS
More competition
Avian diseases
High feed ingredients prices
Threat of import of frozen chicken
1. MD/CEO
Generally a CEO/MD is authorised and responsible for the management of the
organization and its operations by way of delegated authority from the board,
or as expressed in the organization's constitution. This delegation of authority
generally includes responsibility for:
2. FARM SUPERVISOR
This is advanced farm management work in the conduct of general and
specialized farming operations on a large institutional farm. Is work involves
responsibility for planning, coordinating, and directing the operation of a large
institutional farm and its specialized subordinate and related units such as dairy,
poultry, truck garden, field, and orchard, and for the care of livestock and
equipment or for supervising other farm operations of comparable level of
difficulty. Work includes supervision of a large sized group of skilled and
unskilled farm workers. Direction is received from a superior chiefly with regard
to general administrative matters, such as production, purchasing, personnel,
and accounting. This work differs from Farm Foreman II level by degree of
complexity and scope of operations involved.
Coordinates with administrators and research project leaders on work plans and
programs and makes recommendations for improvements, land preparation,
fertilizing, planting crops, cultivation, and harvesting of experimental feed plots.
Supervises all operations of one of the larger and more complex institutional
farms.
The technological innovation that characterized the late 20th century has led
to significant development in a variety of new technologies – notably in the
fields of biotechnology, new materials and product development, and
computer and communications technology. Computer and communications
technology, especially, has been subjected to great advancement in the past
twenty years. ICT is central to the acquisition, analysis, storage, retrieval,
manipulation, management, control, movement, display, and transmission of
data and information.
These developments have indeed shaped the world into a global village,
enabling communication and interaction irrespective of time and space. ICT
has opened the world of marketing, giving marketers an array of new and
innovative ways in which they can communicate with their customers.
Product is the platform for attracting customers. All organizations are in the
business for attracting customers.
Operational marketing
The first year in dealing with a new customer is the most stressful and time
consuming for every business. The subsequent years are faster and
significantly more profitable. We are currently debt free hence the institute is
at operational level with intent to expansion by starting up a fresh farm
located at Darmanawa quarters, Kumbotso LGA, Kano state.
Marketing Strategies
I planned to use the following sources for advertising my products in order to
quickly gain recognition in the market so as to make higher return on
investment.
Radio
Television Stations
Newspapers
2% discount on competitors price
YouTube
Instagram
Facebook
Wechat
and other social media platforms
KEY ACTIVITIES
To operate successfully we need to apply the use of highly experienced staffs
with both technical and intellectual skills in our poultry production..
KEY RESOURCES
What physical, financial, intellectual or human resources do you need?
Physical: production & distribution equipment & technical skills;
Financial: funds to increase capital base & outlay;
Intellectual: capacity building on business skills in the fields of
management, human resources, finance, operations and promotion, sales &
marketing among others.
Human: Competent and experts with both technical and physical
competency, experiences and skills in the field of Media Services, Audiovisual
digital contents development programs and Business professionals.
VALUE PROPOSITION
We offer poultry products to our target customers at affordable prices.
For our corporate consumers we use our research & development and
creative unit to understand their need and provide them with the product
that matches their needs.
CHANNELS
How will you communicate with & reach your customers
Through conventional and emerging distribution and feedback platforms
that include GSM, Pay Home TV channels, Social media pages (our) vendors
and partners.
RELATIONSHIPS
Customer, which without no any business will survive, is a valuable asset in
the products and services delivery of A special unit, our Customer
Relationship Management (CRM) is designed deliberately to provide special
CUSTOMERS
Our customers include but not limited to:
Hotels
Restaurants
Whole sellers
Individuals
Suya Spots etc.
Vaccine
(Signed)
MD/CEO
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