How to plan, start free-range poultry system

Before starting a free-range poultry project, you are advised to grow some vegetables that your chicken will feed. PHOTO/LOMINDA AFEDRARU

What you need to know:

  • Determine the required amount of land, machinery, supplies, labour, and marketing costs to allocate resources effectively.

Create a well-thought-out business strategy to discover the possibilities of raising free-range chickens. 
A thorough approach is essential to success in everything from pasture management to market analysis. Check out our guide, which is geared for those who want to start their own chicken business.

It covers important topics, including breed selection, housing design, and marketing strategies. 

Whether you are starting a new company or growing an already established one, this well-crafted business plan will help you achieve success and expansion in the booming free-range chicken farming sector.

When you do market research and analysis for your free-range chicken farming enterprise, it is important to ascertain your target market’s requirements, preferences, purchasing patterns, and readiness to pay for your goods. It is advisable to research your rivals’ advantages and disadvantages, market share, and pricing policies.

SWOT analysis: This method assists you in determining your market-related advantages, disadvantages, opportunities, and threats.

Pest analysis: This aids in evaluating the potential effects of political, economic, social, and technical issues on your company.

Marketing plan
A marketing plan describes your strategy for reaching your target market via product promotions and sales. 

Your marketing goals, plans, techniques, and budget should all be well-defined. Additionally, it would help if you outlined your plan for evaluating the success of your marketing initiatives. The four Ps of marketing are pricing, product, location (place), and promotion.

This is referred to as the marketing mix. It would help if you outlined how you would establish your pricing, distribute your items, set them apart from those of your rivals, and tell clients about the value you provide.
Marketing channels: These are the means by which you will advertise to consumers; examples include social media, email marketing, internet platforms, flyers, and so on.

Marketing metrics: These are the performance indicators, including sales volume, customer satisfaction, conversion rate, etc., that you will use to assess how well your marketing is working.

Operational plan
Your free-range chicken farming business’s operating strategy should include your approach to product production, processing, and sales. The following parts need to be included in it:

Production: This part should include information on how many hens you plan to raise, the breeds you will use, the feed and supplements you will use, the methods you will employ to ensure the health and well-being of your flock, and the facilities and equipment you will need. Processing: This section should include instructions on how to decapitate, peel, package, and store your chickens. It should also include details about expenses and income, quality control procedures, and legal and hygienic standards.

Marketing and sales: In this area, you should outline your strategy for product distribution and promotion. It must include details on the target market, the price plan, the routes of distribution, the advertising techniques, and the customer support.

Financial plan
You should include a realistic prediction of your revenue and costs for the next three to five years in the financial plan that you have developed for your free-range chicken farming company. It is recommended that the following papers be included:

This record, called an income statement, should indicate your revenues, costs, and profits or losses for each year. This document, known as the cash flow statement, should detail your cash inflows and expenditures for each year.

The balance sheet is a document that should be used to demonstrate your assets, liabilities, and equity for each accounting period.

This document should demonstrate the point at which your revenues are equal to your costs. This is known as a break-even analysis.

A sensitivity analysis: This document should demonstrate how your findings might shift in the event that some of the most important variables or assumptions were altered.

Understanding the system 
Gaining an understanding of free-range chicken farming: Investigate the idea of free-range chicken farming, focusing on the advantages of providing hens with access to the outdoors and the subsequent enhancements in the quality of both the meat and the eggs produced. Emphasise the significance of sustainable and ethical agricultural techniques in order to satisfy the desire of consumers for food that is produced ethically and is healthier.

Key facts
Determine the required amount of land, machinery, supplies, labour, and marketing costs to allocate resources effectively.

Then, create a detailed budget. To draw in and keep consumers, create a strong marketing and sales plan that emphasises social media, branding, advertising, and distribution networks.