How to start Poultry farming business – Costs, Profits, ROI


How to Start Poultry farming business


Did you know the per day consumption of eggs in India have increased from 34 billion in 2000 to 106 billion in 2020 ?  or that India with its 29 states consumed over 3.8 million metric tonnes of poultry meat in the year 2019 ?

Infact the human nutritionist recommend a minimum of 180 eggs and 10 kg chicken per annum for a healthy adult human. So there’s no reason chickening out for this poultry farming business with such demand, don’t you think ?

India is the 3rd largest egg producer in the worlds and the 4th largest chicken met producer after China, Brazil and USA.

The Indian poultry sector is one of the most successful agri-framing business with a value worth euro 14500 million. The reason behind it being successful is the easy availability of raw material, lower operational maintenance and massive distribution chains making this business as organised and profitable as possible.

So, here’s all the hows and whys of you taking up this business opportunity

Market potential and uses

Poultry farming business is a business which involves raising domestic birds like chicken, emu, ducks, geese, turkey etc for their eggs and meat.

The market potential for this business is very vast as it is factually been learnt that the Indian poultry meat consumption is expected to increase to 1672 million kilos from 687 million kilos.

Poultry meat and eggs in facts are the part of a routine meal of an average Indian healthy consumer and the experiment with these in various cuisines have been up and rising making this business bring you a massive sales turnover.

Further the potential for this business can be defined and elaborated on the following basis

On the basis of type of poultry farming in India

  • Broiler poultry farming
  • Layer poultry farming
  • Country chicken farming
  • Emu farming
  • Quail farming
  • Turkey farming
  • Duck framing

On the basis of use of poultry feed

  • Used for consumption on routine basis
  • Used for traditions and rituals
  • Eggs may be used an intermediary for making hair products, face products etc
  • Used as a part of meals and in menu offered by the F&B industry etc


Licenses required

The licenses required for this poultry farming business is

  • Permit from stare groundwater department
  • Animal protection and cruelty coverage
  • NOC by the state pollution control board
  • Animal care standards
  • GST registration
  • Trade license


Investment required

The investment required for this business is

Small scale      :  ₹ 50000 – ₹ 1.5lakhs
Medium scale : ₹1.5 lakhs-₹ 3 lakhs
Large scale      : ₹ 7 lakhs


Profits made

The profits made from this business are ₹ 12 lakh – ₹ 13 lakh per year


Target consumers

The target consumers for this business are as follows

Households: The households make use of egg for breakfast, they use chicken for routine meals and also make use of turkeys for consumption on occasions like thanksgiving as a part of their ritual

Restaurants: The restaurants and cafés make use of chicken, eggs, turkey, ducks etc to attract the meat eating consumers and meet their consumption needs

Cafés: . Cafés on the other hand make use of poultry feed for making complementary coffee food like sandwiches, wraps etc also the make use of eggs in milkshakes and desserts

Butchers: The butchers would require your fresh produced poultry feed to cater to the various meat and egg demands of their routine consumers

Retail stores and supermarkets: These also require packaged form of your poultry produce of various types like ducks, chickens, emu etc because of the various consumers niches that might require different meat for different purposes

Desserts spaces: These require poultry produced eggs mainly to bake cakes, cupcakes, brownies etc

Online Grocery stores: Stores like bigbasket, luscious, grofers also require fresh outlet produce to meet the meat and egg demands of their online customers


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Area required

The area required to set up this business is as minimal as 100-500 sq ft


Raw materials required

The raw materials required for this business are as follows

  • Cereal
  • Grains
  • Broken rice
  • Germs
  • Hatching trays
  • Chick guard
  • Infra red bulbs
  • Bell type automatic waterer
  • Rake
  • Weighing balance


Machinery required

The machinery required to set up this poultry farming business is

  • Hatchery automation equipment
  • Hatch egg transfer machine
  • Linear/automatic feeder
  • Automatic vaccinator
  • Compressed air system


Manpower required

The manpower required for this business is

  • 2 skilled workers for monitoring disease and nutrition control
  • 3 unskilled workers

Moreover, ample training to these workers in terms of the following must also be provided with

  • Machinery usage
  • Equipment handling
  • Safety and precautions


Business model

The business model of a poultry framing business can be defined using these four variants

Value proposition: The value proposition which this business is like to provide to you is

  • Low investment in terms of capital, maintenance and raw materials
  • Numerous distribution and supply chain system
  • Huge target market and higher profit margins
  • Routine demand

Target consumers: The target consumers for this business is as follows:

  • Restaurants
  • Retail and supermarkets
  • Butchers
  • Desserts spaces
  • Cafés
  • Fast food chains
  • Online grocery stores

Competitor review: The main competitors for your poultry farming business are as follows:

  • Sneha foods limited
  • Srinivasa hatcheries
  • Balaji hatcheries
  • V S N hatcheries
  • Venky’s
  • Skylark foods

Marketing strategy: The marketing strategy that can be implemented by your poultry farming business is

  • Billboard and hoarding promotion
  • Sample promotion justifying the hygiene and quality standards Through proper and adequate certification
  • Bulk and cash discount to loyal customers



The poultry farming business has the potential and has witnessed the following growth prospects

  • The demand for processed chicken meat has been up and growing by 15%-20% per annum
  • The total layer production in Indian has reached to a top of 80 million eggs per annum
  • Moreover the Indian poultry farming business is worth 26000 crore, that being its contribution to the country’s national income
  • Lack of processing facilities
  • Quality standards for farm management
  • Supply of quality feed

Profit margin

The profit margin this poultry farming business is likely to yield to you is 15%


Stop waiting for this opportunity to hatch instead make a delicious omelet out of it, here’s why

  • Firstly, the increasing awareness of health and diet consciousness among consumers have made chicken and eggs mandatory for a person to have a gym body which is not possible without your farmed poultry
  • Secondly, this business also has an opportunity to open trade with foreign consumers because of the extensive climatic conditions for poultry farming that could gather a demand across the world
  • Lastly, the investment in this business is very minimal whereas the profits skyrocketing, the business dream.

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