Updated : October 23, 202410 Steps to Start Poultry Farming Business in India
Overview :From understanding the complexities of poultry farming to learning how to start poultry farming ventures of various scales, this resource-rich guide provides readers with invaluable insights and actionable steps. Whether you’re a novice entrepreneur or an experienced farmer looking to expand your poultry operations, our blog gives you practical tips, regulatory guidance, and financial considerations to explore the ever-changing domain of poultry farming business in India.
India’s poultry industry stands as a golden opportunity for entrepreneurs, offering a diverse landscape of captive-bred native as well as exotic birds. It has experienced a huge growth potential in recent years, thanks to the increasing demand for eggs and meat from all across the world. Previously designated as a “backyard activity”, poultry farming in India has now evolved into a thriving techno-commercial sector, attracting investors from beyond borders.
Setting foot in this industry now requires a strategic, keen, and intricate approach coupled with meticulous, organized planning and acquiring poultry farm licence in India. In this blog, we will guide you through the essential steps to navigate the process of establishing a poultry farming business in India and gaining huge success in this burgeoning field. Let’s first begin with some statistics!
Is Poultry Farming in India Worth Starting?
Poultry farming business in India offers a great opportunity for aspiring entrepreneurs, given the sector’s significant contribution to the nation’s economy. The poultry sector alone contributes 1% to the National GDP in Livestock, which accounts for a notable 14% of the total GDP.
India’s rapid ascent in the global poultry sector is evident as it now stands as the world’s third-largest egg producer, according to the data from the Food and Agriculture Organization (FAO). Moreover, poultry meat, the fastest-growing component of global meat demand, has propelled India to emerge as the world’s second-largest developing country in terms of poultry sector growth.
In addition to its domestic prowess, India’s poultry industry has made significant strides in the international market. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported 320,240.46 metric tonnes of poultry products worth Rs. 529.81 Crores (approximately 71.04 USD Million) during the year 2021-22, solidifying its position as a key player in the global poultry trade.
The country’s prominence in the world poultry market is further emphasized by its sixth-ranking position, according to FAOSTAT rankings. Further validating the robustness of India’s poultry sector, The Economic Survey 2021-22 underscores the nation’s impressive standing in egg and meat production on the global stage.
India ranks third and eighth in egg and meat production, respectively, worldwide. Over the years, egg production in the country has surged from 78.48 billion in 2014-15 to 122.11 billion in 2021-22, resulting in a per capita availability of eggs reaching 91 eggs annually in 2020-21. Similarly, meat production has witnessed a substantial increase from 6.69 million tonnes in 2014-15 to 8.80 million tonnes in 2020-21, according to the survey’s results.
How to Start Poultry Farming in India?
Starting a successful poultry farming venture in India requires careful planning, diligent execution, and adherence to industry best practices. Whether you’re a novice entrepreneur or an experienced agriculturalist looking to diversify, navigating the intricacies of poultry farming demands a systematic approach.
From selecting the right breed of birds to implementing effective management practices, each step plays a crucial role in laying the foundation for a thriving poultry business in India. In this section, we’ll outline the essential steps and considerations to guide you through the process of establishing and managing a poultry farm in India effectively.
Step 1: Pick your Poultry Sector & Type of Bird
Selecting the appropriate poultry sector and type of bird is the foundational step in establishing a successful poultry farming business in India. Entrepreneurs have a plethora of options to choose from, including chicken breeding, broilers, poultry feed production, and egg/meat processing.
Each sector offers unique opportunities and challenges, requiring careful consideration based on factors such as market demand, available resources, and personal preferences. As per the availability of birds at your location, and other key factors involved, pick the right type of birds for your poultry business in India.
Step 2: Decide the Location of Your Farm
Deciding on the location of your poultry farm is among the most critical aspects that can significantly impact the success of your venture. Factors such as proximity to markets, availability of transportation facilities, and access to essential resources like water and feed should be taken into consideration. Additionally, the size and layout of the farm should be carefully planned to ensure optimal utilization of space and efficient operations.
Step 3: Decide on the Appropriate Form of Business
Choosing the right business entity is essential for establishing a legally compliant and financially viable poultry farming venture in India. Entrepreneurs can opt for various business structures, including sole proprietorship, partnership, limited liability partnership (LLP), one-person company (OPC), or private limited company (PVT Ltd). Each business entity has its advantages and disadvantages in terms of liability, taxation, and regulatory compliance.
For instance, while sole proprietorship offers simplicity and ease of setup, it also entails unlimited personal liability for the business owner. Conversely, forming an LLP or PVT Ltd provides limited liability protection, ensuring that the personal assets of the business owner are safeguarded in case of legal disputes or financial liabilities. Depending upon your future or long-term poultry farming business goals, select the most suitable one and get your business registered under the same to cater to your compliance requirement.
Step 4: Decide the Name, LOGO, and Trademark for your Company
Creating a distinct and memorable brand identity is essential for establishing a strong presence in the competitive poultry market in India. Choosing a unique and catchy name for your poultry-based company, along with a visually appealing logo, helps differentiate your brand from competitors and leaves a lasting impression on customers.
Additionally, securing trademark registration for your company name and logo provides legal protection against unauthorized use and infringement, enhancing the credibility and trustworthiness of your poultry brand. Certain documents are required for securing poultry farm business IPR registration and thus protection.
Step 5: Define your Target Market
Identifying and understanding your target market is crucial for developing a successful marketing strategy and maximizing the profitability of your poultry farming business. Conducting market research and analysis can help identify the specific needs, preferences, and purchasing behavior of your target customers. Whether you’re targeting individual consumers, retailers, or wholesale distributors, defining your target market allows you to tailor your products and services to meet their unique requirements effectively.
Step 6: Generate a Business Plan
Developing a comprehensive and strategic business plan is essential for laying the groundwork for a successful poultry farming venture in India. A well-crafted business plan outlines your goals, objectives, and strategies for achieving success, serving as a roadmap for guiding your business operations and decision-making processes.
Key components of a poultry farming business plan include market analysis, operational plan, financial projections, and marketing strategy. Conducting thorough market research helps identify market trends, competitor analysis, and target customer demographics, enabling you to position your business effectively in the competitive poultry market.
Step 7: Capital Allocation
Analysing the financial resources required and allocating capital effectively is crucial for starting and operating a successful poultry business in India. Start-up costs for poultry farms include expenses i.e. land acquisition, construction of housing facilities, purchase of equipment & machinery, livestock procurement, and working capital for day-to-day operations. Ongoing expenses such as feed, medication, utilities, labor, and marketing should be factored into your budget to ensure smooth operations and sustainable growth.
Step 8: Market and Advertising
Creating a robust marketing and advertising strategy is essential for promoting a poultry farming business and attracting customers in the competitive market. Leveraging various marketing channels such as digital marketing, social media, print media, and local advertising platforms helps increase brand visibility, generate leads, and drive sales. Creating a visually appealing brand identity, such as logos, packaging, and promotional materials, helps differ your products from others and make a strong market presence.
Step 9: FSSAI Registration/License
For FSSAI registration, poultry businesses with an annual turnover of up to Rs. 12 lakh are eligible, while those exceeding this threshold must obtain a poultry farm license. Under the registration process, basic business details are submitted, suitable for small-scale operations. However, larger enterprises, engaging in interstate trade or import/export activities, necessitate a state or central licence, depending on their scale and reach.
Obtaining a legitimate poultry farm license from FSSAI can help you run your business without any legal barriers. It is crucial to arrange documents required for obtaining a poultry farm license. The poultry farm state license is typically for operations within a specific state, while the central license is for national-level operations or those involved in import/export.
Compliance with food safety and hygiene standards is crucial across all categories. Expert guidance can ensure seamless acquiring of a poultry farm license, adherence to regulations, facilitating legal compliance and smooth operations within the dynamic poultry industry in India.
Step 10: Source of Funding
Determining the source of funding is crucial for securing the financial resources required to establish and operate your poultry farming business successfully. Various funding options are available, including bank loans, government subsidies and grants, private investors, crowdfunding, and personal savings.
Benefits of Starting a Poultry Business in India
Entering the poultry business in India offers a plethora of advantages for aspiring entrepreneurs, ranging from lucrative returns to minimal operational complexities. These benefits collectively highlight the attractiveness of starting a poultry business in India, offering entrepreneurs a rewarding venture with significant growth potential and societal impact. Given below are five compelling benefits underscoring the viability and profitability of venturing into poultry sector;
- Lucrative Returns: The poultry industry in India is known for its high-profit margins, providing entrepreneurs with a lucrative avenue for wealth creation. With rising demand for poultry products both domestically and internationally, a well-managed poultry business can yield substantial financial rewards.
- Scalability and Flexibility: Poultry farming allows for scalability, enabling entrepreneurs to start small and gradually expand their operations as per market demand and resources. Additionally, the business offers flexibility in terms of production cycles and diversification opportunities, allowing entrepreneurs to adapt to changing market dynamics effectively.
- Low Operational Costs: Compared to many other agricultural ventures, poultry farming requires relatively low operational costs. The initial investment in infrastructure and equipment is moderate, and ongoing expenses such as feed, medication, and labor are manageable, ensuring a favorable cost-to-profit ratio for poultry businesses.
- Sustainable Income Source: Poultry farming provides a consistent and sustainable source of income throughout the year. Unlike seasonal crops or other agricultural activities, poultry production operates year-round, ensuring a steady cash flow for entrepreneurs, thereby mitigating the risks associated with seasonal fluctuations.
- Contribution to Food Security: As a vital component of the food supply chain, poultry farming plays a crucial role in ensuring food security and nutrition. By producing eggs and meat rich in essential nutrients, poultry businesses contribute to addressing malnutrition and meeting the dietary needs of a growing population, thereby serving a broader societal purpose.
- Govt. Support through Incentive Schemes & Subsidies: With an aim to support MSMEs, Government Schemes and Subsidies are also available to support poultry farming initiatives, offering financial assistance, tax incentives, getting poultry farm licence, technical support to the eligible applicants and also, easing the process of poultry farming.
Capital Required to Start a Poultry Farming Business in India
Understanding the financial requirements is crucial before venturing into the process of poultry farming business in India. The capital needed varies significantly depending on the scale of operations, with small-scale ventures requiring an investment ranging from Rs. 2,00,000 to Rs. 10 lakh, medium-scale operations necessitating Rs. 10 lakh to Rs. 35 lakh, and large-scale enterprises demanding approximately Rs. 2-3 Crore.
Entrepreneurs can explore different financing avenues based on their financial situation, business requirements, and growth plans. Banks and financial institutions offer loans and credit facilities made to suit the agricultural sector, providing capital for land acquisition, infrastructure development, equipment purchase, and working capital needs.
Assessing the financial feasibility and allocating resources accordingly is essential for ensuring the smooth establishment and sustainable growth of a poultry farming business in India. In order to determine suitable capital to start and run your poultry farming business in India, seek expert assistance.
Conclusion
Following the outlined steps, including selecting the poultry sector and type of bird, deciding on the farm location, choosing the appropriate business entity, branding, and trademarking, defining the target market, generating a business plan, allocating capital, marketing, and advertising, obtaining FSSAI poultry farm licence/registration, and securing funding, aspiring poultry farmers can establish a thriving business with significant growth potential and societal impact. This guide would have provided comprehensive knowledge.
