Why Majority of New Entrants In Poultry Farming Go Bankrupt?

Written by agrikace

August 13, 2020

It is no news that most new entrants to poultry farming go bankrupt.Over the past decade,a Poultry research conducted has it that more than 80 evaluations of failed emerging poultry farms in Nigeria . In many cases it was found that poultry houses were empty and in various states of dilapidation.

Why did they fail? This is difficult to answer, as poultry production is a complex farming enterprise. Here are some of the more common reasons these farmers failed.


A biosecurity programme is designed to avoid or prevent diseases from entering or spreading on the farm. Two of the most critical aspects are access control and disinfection of persons and vehicles entering the premises. It was found that people and vehicles could enter and leave the premises at will, and buyers were allowed to enter chicken houses freely. This is one of the surest ways of introducing disease to the farm.


In most cases, farmers made little or no effort to carry out a feasibility study. This would have revealed the lack of suppliers and other important role players in the vicinity of many farms. The most important of these are the suppliers of day-old chickens, point-of-lay hens, feed, medicine, disinfectants and vaccines. Also often missing from the area were veterinary services, reference laboratories, abattoirs, processing and, crucially, a reliable market. Some of the projects were located in areas difficult to reach, especially during rainy season.


To become commercially viable, an emerging farmer must provide the chickens with the correct type of housing for the production system practised. Many enterprises failed to do so. Example a house of seventy by thirty feet can contain a thousand laying birds.


This was one of the greatest problems faced by many. Most farmers are unreliable, Some failed to honour their contracts while others could not handle their finances. Most did not put money back into the business. Because of these problems, many ended up selling live birds – an unreliable market as farmers often have to keep chickens for up to eight weeks before they are sold. During this time, they consume the profit.


95% Of the farmers did not receive training before starting, a fact evident in the way they reared the birds. It is advisable to go for training beforestarting the business.

Source: Jioplus Integrated Farm.

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