Poultry farmers have to be experts in business since they are running their own operations. In order to maximize their profitability, they need to plan ahead and understand everything that goes into the business of raising poultry and selling the meat or eggs produced by their flocks. Here are some tips that may help farmers increase their profitability in the future.
Increase product quality
Farmers should raise poultry that is more appealing to consumers in order to boost business and profits, according to a Nigerian poultry farmer who has experienced success in local and international markets. There is no shortcut to success other than hard work, dedication, and good planning… Quality determines the quantity, Felix Aigbodionu said in an interview with Trade and Investment Hub Nigeria (TIHN).
TIHN is a country-level node of IFC’s Private Sector Department of Global Markets Division which aims to facilitate trade between Nigeria and other countries as well as provide market information and technical assistance to Nigerian businesses.
Reduce costs
You may be able to reduce your startup costs or overhead by using shared spaces, such as incubators and co-working spaces, which are becoming more common in Nigeria. The World Bank estimates that incubator-based support programs help entrepreneurs launch businesses at a lower cost and higher success rate than when they attempt to do so on their own.
Incubators also make it easier for first-time business owners to network with professionals who can provide access to capital and other resources that may be necessary for growth and expansion (more about financing later). When looking for an incubator or co-working space, ask fellow farmers what has worked well for them or look online for reviews from other clients.
Improve product packaging
You may not realize it, but your packaging has a lot to do with how successful your product is. Take a moment to think about what catches people’s attention and make that packaging as eye-catching as possible on your poultry farm products.
Also, be sure to invest in high-quality materials for your packaging—it will pay off in future sales, consumer trust, and brand loyalty! This may seem like an expense upfront, but you’ll see returns on that investment over time through increased sales of high-quality products.
Take advantage of the latest technology
Look into new technology that helps poultry farmers in multiple ways like keeping track of flock statistics and managing information with comfort and ease. There are smartphone apps available that allow poultry farmers to record live weights, feed weights, and egg production as well as information on birds’ health conditions and photos for identification purposes just to name a few things recorded in such apps.
With such software, it is easy to have a daily report on what you need to know from your farm management software and use it as references or as an eye opener for future decisions making related to business planning.
Streamline production processes
Agriculture is a business and you should treat it as such. Cut out extraneous production processes that are costing you time or money. Calculate exactly how much time your employees spend on each task and how much each task costs you per hour, and streamline production based on that information.
Strengthen your marketing efforts
Forming a business plan will help you form a stronger foundation for your poultry farm. With a solid plan in place, it’s easier to strengthen your marketing efforts by setting goals and tracking results. Keep an eye on any leaks in your profit margin—poor management or growth that outpaces expenses—and consider raising prices accordingly if necessary.
Make sure you monitor how much time you spend working on your farm and how much time is left for family, friends, and other pursuits outside of work so that you don’t burn out before reaping any financial rewards. Most importantly, take note of what works (and what doesn’t) over time and use those insights to inform future plans on growing your business even further!
Develop your own products
If you’re not ready to create a whole new product, try improving an existing one or adding something your business is already making to an existing product line. It may take some time, but if your idea is successful, it could greatly improve your business’s profits and help make your company a more attractive prospect for outside investors down the road. Just be sure to do your homework:
With our many competing products in supermarkets today, it’s important that you have a good marketing plan and understand your market before jumping into a brand extension—or else you could end up losing money on something that should never have been made in the first place.
Develop loyal relationships with your customers
You want your customers to come back again and again, so make sure you’re interacting with them on a regular basis, perhaps through a newsletter or something similar. By sending valuable updates about your products to them, you will build trust between yourself and your customer base.
As customers grow to trust you more and more, they will be likely to buy from you again—and again—which is exactly what you want if you’re in business for profit! Keep building relationships until all of your consumers are in firm loyalty mode; then sit back and watch that income grow!
Conclusion
Is there a way to make poultry farming more profitable? The simple answer is yes, but it requires more than just shoveling some cash into your business venture and waiting for things to work out. To increase your profits, be sure to create a clear business plan that gives you direction and allows you to see how your farm will turn a profit in less than ten years.
