Poultry production remains to be one of the most profitable agribusiness ventures in the Philippines. 

Many professionals in different industries have started their poultry production journey with zero or limited experience. Some have been working in the animal production sector for many years and decided to venture on their own. Others were inspired by industry veterans who have gained success over the years. All of them saw this great opportunity and pursued it with a burning passion.

With dedication, willingness to learn, and consistent hard work, these Agri-entrepreneurs found success.

But goals and motivation are only the beginning.

To increase the chance of success, these entrepreneurs developed a solid business plan and invested for the long term. They accomplished all the required government permits, found a good location to set up, and built reliable and environmentally safe infrastructures. They never stopped learning about the best practices to improve their output. They also developed good relationships with their trusted feed companies and their animal health representatives.

What is your startup story?

How did you face and solve the challenges you meet along the way?

Where we are

In 2019, chicken overtook pork as the primary protein source of the Filipino diet in terms of per capita consumption. The growing population in the country and the negative effect of African Swine Fever in hog production contributed to such increased demand for poultry products.

According to the Philippine Statistics Authority (PSA), demand for dressed chicken surged by 40% from 2009 to 2018. 

Many factors contributed to the increased demand for chicken such as:

Establishment of new commercial farms and dressing plants 

Switch to tunnel-ventilated house for some commercial farms

Expansion of a farm’s stocking capacities 

Shift to contractual farming and enough supply of day-old chicks

PSA also stated that egg production from January to March 2021 was estimated at 152.55 thousand MT. This was 3% higher than the 2020 output of the same quarter. CALABARZON, Central Luzon and Central Visayas are the top three regions with the highest egg production in the country during this quarter, with Central Visayas posting the highest annual growth of 14.4%.

Chicken meat is also affordable, has  lower fat content, and remains to be the top demand of fast-food businesses. In fact, aggregate demand for chicken is projected to increase from 1.6 million MT in 2020 to about 1.8 million MT by 2023.

Starting Up 

What are the next steps?

Before engaging in this business, there are important considerations for beginners, such as selecting proper stocks, good rearing management, feeding and health management, and even the ecological implications of the poultry operation.

For growers, finding a good market is also one of the considerations for long-term business success. A ready market should be established even before starting a poultry business. Contracts and selling arrangements with establishments like hotels, restaurants, fast food outlets, groceries, and institutional buyers can be made. 

Scaling Up

But what if we want to aim higher?

Poultry farming can generate a stable cash flow even for small-scale enterprises. It is also highly scalable. It is possible to multiply your flock size from a small base. However, if the grower plans to move up to a commercial scale, certain factors are needed to be considered and improved like initial investment, upgrade, repairs, training of staff, waste management systems, and additional funding for day-to-day demand of the operation.

A scaled-up operation does not only need financial backing but must be rooted in research, training, and deep attention to detail. The best practices regarding infrastructure, scheduling, and equipment should be strictly followed. These things together with improvement in technical expertise can give the confidence to solve any problems that may be encountered in the future.

And the future is bright.

References:

Chicken Egg Situation Report, January-March 2021. Philippine Statistics Authority. Retrieved 18 August 2021 from https://psa.gov.ph/content/chicken-egg-situation-report-january-march-2021

Philippines: Is Poultry Farming Feasible? (Profit and Cost Study 2021). The Big Book Project. Retrieved 5 August 2021 from https://thebigbookproject.org/agri/philippines-is-the-poultry-business-feasible-profit-cost-study/

How to Start a Poultry Farm Business. (2020, December 14). Business Diary PH. Retrieved 5 August 2021 from https://businessdiary.com.ph/438/how-to-start-a-poultry-farm-business/ 

Philippines: Chicken overtakes pork as preferred protein. (2020, April 20). Poultry World. Retrieved 5 August 2021 from https://www.poultryworld.net/Meat/Articles/2020/4/Philippines-Chicken-overtakes-pork-as-preferred-protein-576305E/

Thinking of starting a poultry business? Here’s what you need to know. (2019, April 9). The Poultry Site. Retrieved 5 August 2021 from https://www.thepoultrysite.com/articles/thinking-of-starting-a-poultry-business-heres-what-you-need-to-know