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Poultry farm, 5000 chicken farming Business plan, shed size, investment cost and project report 2022

United States is the number one country which holds the maximum number of poultry farms globally. China raise the maximum number of chickens in the world for meat.

According to statista.com report, there were more than 23.7 billion chickens in the world in 2019. In current reports, chicken is 22% part of total meat globally. 

Principal purpose of chicken farm is to raise chickens for meat. It is not developed for layer egg farming.

Poultry farm business plan 2022

In an integrated farming system poultry farming is one of the major parts of the business model, which is helpful to solve problems of farmers. 

Poultry farming is a method of raising chickens for meat. In this method, a specific kind of rooster is the primary choice for meat. You can convert Poultry farming into sustainable poultry farm too.

Poultry farming investment for 5000 chicken farm

Before getting the method and idea of poultry farming, let's understand initial investment to start a poultry farm. 

One time investment 

  • Land cost - around 2500000 INR/ $33333.33 (for 1500 square meter = 15 m  x 100 m) 
  • Labour cost - 100000 INR( $1334)
  • House construction cost- 400000 INR ($8000)
  • Electricity fitting- 40000 - 50000 INR($534)
  • Water connection- 50000 INR($666.7)

TOTAL COST - 3100000 INR( $41500)

Working investment for every batch 

  • Chicken cost - 50000 INR /$670
  • Chicken feed - 250000 INR(1300 INR /50kg)($3333.3)
  • water usage- 5000 INR (if govt line) ($66.7)
  • Medicines and antibiotics- 800000 INR ($1070)
  • electricity bill- 25000 INR($333.33)

TOTAL COST - 410000 INR ($5470)

Chicken farm Business plan

Some of the Indian breed of chickens for poultry farming are kadaknath, Giriraja, Garmapriya, Indian giant, etc. 

    How to develop poultry farming business?

    Although poultry farming looks like an easy farming business model there are some difficulties and challenges on the ground reality. 

    Chicken farming business depends on a factors like Budget, variety of chicken, chicken-feed, land, and temperature. 

    To start a poultry farming Business, follow the given instructions-

    5000 chickens Poultry farming Business plan project report

    Selection of land for the busines must be very subjective. If you have enough non fertilized land then it is best for the subject.  

    Area required for 5000 birds

    If you are thinking about a 5000 chickens farm, then you must have at least 0.5m x 0.5m square meter area for a chicken till its full growing process time. That means you should have a 1500 square meter area of 15m x 100m. 


    Poultry farming


    If you don't have this much area then your cost will depend on your area type. In a rural area, it is easy to buy land at a cheper price than in urban areas. 

    It depends on you how much can you invest in buying an above-measured Land but you have to get this first for sure.


    Poultry shed size and cost for 5000 birds


    According to their land requirement, housing must be fixed to protect all the area surrounded. 

    The house roof needs to be slopy-like hill regions to protect birds from over moisture in the rainy season.

    You can manage to design the wall structure of Tin metal(which is cheaper), but it will not effective in summer. 

    For a 1500 square meter area, you need 15x100 square meter dimensions to make housing.

    Housing must have proper exhaust features and a drain system. It is not necessary but you can use layer platforms if you have a shortage of land.  


    Cost of shed for 5000 birds

    Housing will cost you around 300000 INR, including tin roof cover and labor. 

    Chicken birds arrangement and cost

    There are more than 250 breeds of chicken but in poultry farming, people use broiler, some cross breeds and aseel for business. Some Crossbreeds are also part of poultry farming but they are slightly different from these two.
    Because of the high demand of chicken, it is not difficult to arrange small chicken birds for your business. 

    In case of broiler chicken bird, a small chicken bird cost around 10 INR, so total cost becomes 10x5000= 50000 INR( $670) for 5000 chickens.

    You can also read cow breeds identity and performance in Dairy farming business

    Vaccination of birds

    Every chicken bird is insecure in the poultry farming business if they don't get proper vaccination.

    If you ask veterinary surgeons, they suggest getting them to vaccinate after one month of their birth. 

    Every chicken must be vaccinated because they are easily caught in infectious diseases. If even one of them has an illness, then the entire business comes under threat.

    So make the sure birth period of chicken birds during buying them from the seller.

    It will cost you around 15000 to 25000 INR for all birds.

    Chicken feed for 5000 birds

    The growth of chickens depends on their feed and cure.  

            Chicken Feed is one of the most important the factor in the growth of chickens. If you give them a proper diet then they will take approximately 4 months to grow fully. 

    Cereal grains and oilseeds mixture in 70:30 respectively is the best diet in a study of food experts cereal grains are most of the part of the protein in their diet. 

                     The total feed for a chicken in a day is one-fourth of a pound in a day which is 113 grams per day.


    Cost and requirement:

     That means you have to use 113 x 5000 = 565000 grams of chicken feed which is 565 kg daily. In the market, a 50 kg bag of the average quality of chicken feed is around 1300 INR. Around 12 bags of chicken feed is enough for a day. That means you have to spend 1300 x 12 = 15600 INR($208) daily. 

    Water supply

    You can ask for a connection with the local government water supply for the chicken farm. It is the best option. 

    If you want to make an automatic system of water then you have to fix this at the time of construction.

     It will need long pipes with a hole beside next with fixed distance as same as the distance between two chickens or you can provide them water by making a slot for them directly.

    Usually, in poultry farm people provide  them water in particular pots.


    Cost and requirement:             

    It will cost you 50 holes in a 100-meter pipe. That means you need a hundred pipes for the purpose. The pipes should be two inches thick. It will cost around 100 rupees per meter and total 100 x 100x 100 = 100000 INR($ 1334).

    this cost is additional for the automatic system but you can use simple methods too.

    A fully grown broiler is fixed based on its weight. A full-grown broiler chicken has an average weight of 2 kg. The broiler wholesale price in the market is 80 INR per kg. 

    That means you will have 160 INR for a chicken. That takes towards earning of minimum 800000 INR.  

    In the first year, you will get a profit of around 300000 to 350000 INR. Remember one-time investment cost is 3100000 INR. By this speed, you will get 3 batches every year and earn a profit of 1200000 INR. 

                       That means you will have to invest 3 years to recover your total cost of the business.  

    After this, you will have a better model of earning and you can increase that too.  

    Remember it's on you how you recover your construction cost by this profit. But this is sure that you will get fixed profit in every batch with little bit ups and downs. 

    Is poultry farming profitable?

    A general perception of starting a business is risky among beginners. Their thought process is very doubtful towards every business, which is a natural thing.

    Poultry farming demands full knowledge and information on how to handle poultry birds in any case. Only reading knowledge is not enough to start a poultry farming business. 

    Even sometimes those people don't get much profit who have poultry farm for a very long time. 

     Although poultry farming Business is highly profitable but it is also true that everyone doesn't get success in it.

    Profit deciding factors in poultry farming

    Only expertise can't give one larger return instead its major part is depends on the way of how business is performed. 

    There are some factors that decide the success rate of the business.  

    • Way of raising poultry birds
    • Breed of bird
    • Maintenance in temperature
    • Structure of practicing the technique
    • Basic investment
    • Market value

    Those who are able to manage these factors then they always own almost a guarantee to get a very good return.

    Subsidy in poultry farming Business 

    On state level, there are many states in India those provide subsidy on a small poultry business. 

    There are some scales of subsidies in poultry farming but those are not effective or available for small farms. Mainly, subsidy starts from 3000 to 5000 poultry birds, which is up to 20 to 25% on loan provided from the bank. 

    There are no specific subsidies on small poultry businesses as mushroom farming, gobar gas plant, polyhouse farming, etc. 

    Challenges of poultry farming 

    Following are some point to point challenges in the poultry farming business-

    • Beginners without training

    People, who start poultry farming first time and they consider a profit from it without the training then they are wrong, 

    One out of fifty people can be successful in the poultry farming business without training. The rest of them fail and they imprecate their luck after.

    Without training, it is a challenge to execute the right things without mistakes while you can't take the risk. 

    • Infection diseases and care

    Poultry birds get infectious diseases because of living and walking on moisture, particularly in the rainy season. 

    Without proper feed and health check-ups, birds can keep fever for a long time. 

    It is necessary to take regular check-ups of their health and keep them vaccinated.  

    • Feed quality 

    You can't give rough feed to your poultry birds to grow properly. 

    Chicken birds need high protein and mineral feed to sustain for the average time period.

    Your diet plan for chicken depends on their size and growth period. It is not easy to provide proper feed on the fixed time period in bulk. 

    • Moisture and drain

    In the rainy season, it is not easy to maintain proper dryness inside and outside the poultry farmhouse. Poultry birds like a dry atmosphere to live, 

    It is not an easy task to maintain proper drain at least inside the poultry farm.

    • Temperature maintenance

    If your housing shed is of metal(Tin), then it is challenging for every bird to survive in the summer season. 

    The Tin shed gets hot quickly and keeps for 8 to 10 hours daily. This time period with high temperature can affect poultry birds and even they can die in it. 

    It doesn't easy to maintain the temperature in summer and winters up to 20 to 30 degrees Celsius. 

    • Management with place

    One of the major challenges in the poultry farming business is the management of land and birds. It doesn't matter you have  500 birds or  5000 birds if you are not able to manage them in an available place(according to their comfort)

    The economic perspective of poultry farming 

    Poultry farming is a long-term business, It can be last for more than 10 years, so it is important to understand its economic and organic/bio contributions and aspects.

    • Poultry farming provides primary jobs on different scales. The employees of poultry farming start work from labor, caretaker to marketing work. 
    • Poultry farming fulfills the high demand of people for consuming meat and eggs. It directly contributes to the market economy.
    • Poultry farm waste can use in biofuel/gobar gas plants. Later it becomes better compost for agriculture.
    • Poultry farming is a chain of multiple market products and market production. It increases the rate of production and consumption in the market. 

    How was poultry farming affected during the lockdown?

    The only and only thing people care about during the pandemic is their lives that is a very obvious thing. But still, the pandemic affected almost every sector of the economy, including primary, secondary, and tertiary.
    Following are the impact on poultry farming and related structure in the market- 

    Farms got total closed

    The major impact of the pandemic on the poultry farming business affected the poultry farms. Most of the poultry farms got closed because of almost zero demand for chicken in the market. 
    Some of the poultry farms that were specifically for eggs production, got closed. But not everywhere. In rural areas or suburban areas, some poultry farms have not got closed. 
    Overall, the pandemic reduced the business to its one-fourth in the country.

    The situation of loan providers and getters

    The second major impact of the pandemic affected the loan providers and loan getters. 
    Those people who provided loans to people for poultry farms did not get their money back from them.  These people were major landlords, bigger farmers, and some richer people who depend on their loan-providing businesses. During the pandemic, their income was reduced, and even their basic return was reduced or not returned somewhere. 
    Despite this, loan providers are in a bit better condition from loan getters. 
    Those loan getters, who just invested their money in the poultry farming business, got broke down. They were depend on the first income of poultry farms to return their debts but the pandemic destroyed it. 

    Impact on market economy

    Because of the huge population, the demand for chicken in the market is very high. In simple words, poultry farms contribute a large portion to the Indian economy. 
    There is no provided data by the government on this, but still, experts claim that 80 to 90 percent of poultry farms were affected by the pandemic. It means, loss in the poultry farming business is near 12 figures in Indian rupees during the pandemic.

    Poultry farming equipment

    There are some basic equipment required in poultry farming. Some of them use inside the house and some of them use for birds.

    Thermometer - To check the temperature of birds and room from inside

    Exhaust fans- To reduce the temperature to moderate.

    Water pipeline for floor- to clean the floor and to maintaining hygiene.           

    Vacuum cleaner- To clean the dirt and broken feather of birds.  

    Driers- To dry the wet room and moisture.

    Automatic Heaters- To maintain the temperature in winters to moderate. 

    Precautions for poultry farming 

    • You have to maintain the temperature inside the farm,/ because chickens can survive in a maximum of 35 degrees Celsius and a minimum of 10 degrees Celsius. 
    • You have to feed them properly on daily basis. Feed must be cereal grains and oilseeds mixture. 
    • Check their care from infections and diseases. 
    • Use only males on the farm, Hen is for layer egg farming. 
    • Chicken farms should be clean for this purpose. 
    • The water supply system can be automatic. 
    • The house must have fresh air or a skylight. 

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