How to Start and Operate Chicken Hatchery Business

There is a fair market/demand for birds in Nigeria which sky rocket during holidays and festivals. The idea is aimed at establishing a venture that is specialize in hatching of eggs for layers and broilers for both local and hybrid birds.
The hatched chicks are expected to be sold out at early stage while few can be reared( most especially the layers) for the production of eggs.Depending on budgeted capital, if about 20,000 chicks is being hatched per month, the revenue potential is estimated at NGN3,000,000.

Process Description
Eggs are collected and inserted into the Incubator for 18 days. The eggs are then transferred into a Hatchery for 3 days to hatch.
Some incubators come with hatchery, however it is advisable to have them separately for commercial production.

Market Analysis
The business has a great market demand both in rural and urban areas throughout the year. Market for the Hatched chicks comes from individuals and poultry farmers across the country. The product can also be exported to neighboring countries.

Capital Investment/Requirements
To start the business, equipment listed below must be acquired, most are available in Nigeria but can also be imported. Sizes and capacity of these equipment depend on prospective production capacity.
In order to enhance the smooth running of the system, backup for these equipment can also be obtained.
When making decision to purchase any of these, factors such as maintainability, durability, operations(easily to operate), spare parts etc. should be considered.

  1. Incubator : A device simulating avian incubation by keeping eggs warm and correct humidity in preparation for hatching them.
  2. Hatchery : An apparatus in which eggs are hatched artificially
    Note: some incubators come with hatchery.
  3. Feed mills & Mixer : for the production of food needed to feed the chicks immediately after hatching.
  4. Generator : for generation of power/or serve as backup for commercial source of power if available/accessible.
    Production and Operation Costs: Direct Materials, Supplies and Costs
    Apart from the basic Capital Investment, it is important to note the following running cost as applicable to the day to day running of the business.

Parent stock/Eggs: You can buy layers to produce the require eggs or buy the eggs directly
Coffee husks : Use for production of feeds
Disinfectants & Vaccines
Utilities (power & water)
Renting Capital Sourcing and Government Incentives
Chicken hatchery is a lucrative business with returns on investment from the first 30days. To start the business on low capacity, personal savings will do, however, loan might be required for expansion which in turn facilitates increase in revenue. Such can be obtained from friends, family or Banks.Being an Agro-based business, equipment, tools and chemicals are mostly duty free on importation and/or subsidized by the Government, others supports and subsidy are also available through the ministry of Agriculture both at state and federal level.

Business Registration
It is important to register your Business with Corporate Affairs Commission(CAC), this can be done personally, through a lawyer or any other agent, a business name will be ok for small scale production, however it can be incorporated for medium or large scale productions.
Registering and Certifying your business with appropriate body(ies) will give access to benefits and incentives from government, groups and association. It will facilitate trust and ease of doing business.