What Is Needed to Start a Poultry Farm Business

Updated on 11 September 2024

Subscription Form (#66)

Starting a poultry business

Chicken farming or poultry farming is a popular and lucrative business. You can farm chickens and grow them for many purposes. There is a huge demand for chicken meat in South Africa and you can take advantage of that by starting a poultry farm business.

Poultry or chicken farming is defined as the process of growing chickens for the purpose of meat production or egg laying. Chicken farming is typically easier to do than other kinds of animal farming.

If you are interested in venturing into the animal farming business, you can do so by starting a poultry farm business. In this article, we look at what it takes to start a poultry farm business and where you can get funding for it.

Step 1: Getting Started on Your Poultry Farm Business

Before you can buy the tools and equipment you need, you will first have to figure out what kind of chicken farming enterprise you want. The top three types are:

Free-range Farming: With this kind of farming, chickens are allowed to graze naturally and be outdoors without restriction. You will need fencing and a shelter to protect your chickens from bad weather and predators.

Intensive Farming: This type of farming means that your chickens are in a tight (cramped) environment, indoors and in some sort of battery cage system. However, with regulated settings, comprehensive feeding systems and customised housing, you can get a chicken farm that excels in output efficiency.

Organic Farming: Organic farming follows strict regulations which forbid the use of antibiotics, hormones and artificial chemicals. If you use this method, you will need to give your chickens natural feed, access to outside spaces and promote animal well-being.

Once you have decided on which type of chicken farm you want, you will have to decide on the type of chicken you want to farm. Research which breeds are available locally, are in-demand and work with your environment.

Some chicken breeds which are popular in South Africa, include:

Broilers – Best for meat production. An example of this is a Ross chicken.

Layers – Best for high egg production. An example of this is a Leghorn chicken.

If you want to do both meat production and egg laying, you can use dual-purpose breeds such as Orpington chickens.

This step is what you need to do before putting your plan into action. You will also need to clearly outline the goals and objectives for the business and conduct thorough market research. These actions will ensure you understand the amount of work needed for the business to succeed.

Additionally, the market research will help you better understand the demands of your target area, market trends, consumer preferences and the competition. You can also start to identify potential customers such as wholesalers and assess their needs.

SME on TikTok

Step 2: Getting Funding for Your Poultry Farm Business

It will cost you roughly R 25 000 to R 60 000 to start your poultry farm business. The cost depends on the size of your enterprise and how much of your own capital you have ready to invest. There are a range of funding initiatives you can apply for.

Women Empowerment Fund (WEF)

Brought to you by the National Empowerment Fund, the WEF provides funding from R 250 000 to R 75 million.

iMbewu Fund

The entrepreneurship finance initiative under the iMbewu Fund is aimed at capital to start-ups. The fund uses loans, quasi equity and equity finance as funding tools.

Rural, Township and Community Development Fund

This initiative has a strong focus on funding rural-based farm activities.

National Youth Development Agency (NYDA)

The NYDA grant programme helps youth funding and mentorship. The platform has a funding range of R 1 000 to R 250 000.

These are just a few funding initiatives you should consider when you set up your poultry farm. Another option (if you can) is to fund the business yourself. If you decide to fund the poultry farm yourself, you will need the following:

  • A zinc structure to house your chickens. For 500 chicks, it will cost you just above R 16 000.
  • Feed for your chickens.
  • Transport to help you bring the chicks to the farm.
  • Antibiotics to ensure your chickens are healthy.
  • More chickens in case of death to others.

Remember these are just the basics of starting your poultry farm. Always be prepared for any other additional costs and unexpected interruptions. It won’t be easy at first but once you get started, you will see progress and soon enough you will see profit.

South Africa has space for many agricultural businesses, you can also start a rabbit farm or an agro-processing enterprise. Poultry farming is a very competitive business and it’s really about how big your numbers are.

Start small and be patient, before you know it, your business will go beyond your dreams and you can start supplying to wholesalers and big retailers.

Visit the advice page to speak to our mentors for more actionable business mentorship.

Get Personalized Advice from Experts on the Same Topic

Phindile Ndamase
Founder at Soteria Group
Suze Bouwer
Founder of Redmatchstick Marketing
Thenjiwe Morule
Founder of Nomaza Business Development Services
Steven Nicholls
Co-Founder of Tholo Leads the Way
Nikki Gajoo-Frielinghaus
Founder of Imali Coaching
Thabo Ncalo
Managing Partner at 8th Season Capital
John Sharpe
Independent Consultant

Get Weekly 5-Minutes Business Advice

Subscribe to receive actionable business tips and resources.

Subscription Form (#66)

Feeling Stuck?

icon