Archives for December 2017

Opening a Poultry Farm

Starting a chicken farm business involves writing a detailed business plan, applying for financing, collecting eggs, setting up facilities, and raising and feeding chicks.

Laws and Regulations

The Canadian Food Inspection Agency is tasked with monitoring fraudulent labelling, inspecting for foreign diseases and pests, and inspecting poultry processing plants and facilities. The Agency is also responsible for the monitoring of fertilizers, feeds, and seeds.

Equipment

As a first step, you may want to do research and make a list of the equipment required to start a chicken farm business. Examples of poultry farming equipment include things like egg baskets, chicken crates, egg candlers, and egg washers and graders. You will also need incubators, poultry feeders, water regulators, manual or nipple drinkers, and circular and linear feeders. Automatic feeders are also available. When it comes to heating equipment, you can choose from different types, including infrared bulbs, gas brooders, kerosene or charcoal stoves, and hovers.

Write a Business Plan

This is an important step to obtain financing for your egg and poultry business. Make sure you include a section on the profits you expect to generate, your target market, equipment required, your operational strategy and operational requirements, and more. Describe your target market and potential customers, for example, agricultural merchants, fast food chains and restaurants, stores, hotels and chains, individual customers, and households. You may want to discuss your marketing strategy and channels as well, including referrals or mouth marketing, online marketing, business fairs, seminars, and expos, and yellow page ads. Other options include food related newspapers and magazines and brochures to hand over to merchants, stores, restaurant and hotel owners, and individual customers.

Financing

The next step is to apply for financing, whether in the form of a subsidy, grant, government-backed financing, or loan from a credit union, bank, or finance company – for more options click here. One option is to apply for financing under the Canadian Agricultural Loans Act program. Loans range from $350,000 to $500,000, depending on the purpose. This can be refinancing, consolidation, construction of buildings or facilities, improvements, the purchase of land, etc.  The money can be used to purchase machines, apparatus, implements, and tools. Other ways to use financing include driveway and road construction, irrigating and clearing of land, overhaul or repair of fencing, and purchase of livestock. Eligible applicants include agricultural co-ops, part-time farmers, start-up and beginning farmers, and existing farmers. Farmers can be cooperative associations, corporations, partnerships, or individual farmers. Another option is to apply for a start-up loan with your local bank or union or a big bank such as Scotiabank, CIBC, or Toronto-Dominion. Big banks such as BMO, for example, offer commercial mortgages and business loans as well as agricultural, mortgage-secured lines of credit, operating lines of credit, and installment loans – for more options click here. A business credit card is yet another option to cover additional expenses such as the purchase of coops, cages, laying nests, and so on. It is best to choose a credit card with a longer grace period, big credit limit – for more options click here. Businesses can try fixed-rate term loans and small business installment loans. When choosing a loan, factors to consider include the interest rate and repayment schedule, whether your employees, business partners, or related parties would need access to credit, and others.