Nigeria’s poultry production is expanding but is not keeping pace with rapidly increasing domestic consumption requirements. The domestic supply shortfall is estimated at 25,000 MT per annum. Despite the supply shortfall, the Government of Nigeria (GON) imposed a ban on legal frozen poultry imports in July 2002 to support local production. Prior to the new ban, apparently virtually all poultry meat imports entered the country unrecorded. Nigerian poultry producers are unlikely able to compete with illegal frozen poultry imports because of the high cost of inputs.
The poultry farm will produce broilers that will be sold dressed or live to fast food operators or individuals that need good quality broilers. For the dressed broilers, the birds will be slaughtered observing all socio-cultural and religious norms of slaughtering poultry. The dressed broiler will be processed and packaged in white nylon for storage in the cold room and then they will be ready to be sold to institutional buyers or individuals.
The supply of broiler meat in Abuja is from two sources: Local farmers within the F.C.T and other established farms in other part of the country.
The existing supply gap is very large consequently; the market is large enough to justify the entry.
THE LOCAL BROILER INDUSTRY
This industry consists mainly of local small scale farmers who are resident in most of the area councils of the FCTA and its neighboring environs. These farmers supply constitute less than 50% of the required broiler chicken supplied and they lack the capacity to meet the demand of most hotels and fast food companies located in Abuja. As a result, the hotels and fast food companies depend primarily on large farms in other parts of the country to meet their demand.
The major competitors in the market are the large broiler farms situated in other part of the country. They usually dress their broiler meat on their farms and transport it by cold trucks to Abuja for onward distribution to their customers.
LEADER IN THE INDUSTRY
The front runners in broiler supply to the FCT are from farms that are situated in the Western part of the country with sales offices in Abuja. They are:
1. Zartech Farm, Ibadan
2. Tuns Farm, Osun State
3. Obasanjo Farm in Ota, Ogun State
4. S & D Farm in Abeokuta, Ogun State
The price for dressed broiler per kilogram ranges from N600 – N750 depending on the quantity purchased. For wholesaler the price could be as low as N600 per kilogramme while individual buyers could pay as high as N750 per kilogramme for the same dressed broiler.
MARKET ANALYSIS SUMMARY
Our target markets will be wholesalers, fast food operators and restaurants within the Abuja metropolis. The idea is to focus mainly on this type of consumer/buyers at the start of our operation and much later have a sales outlet where individuals can also make their purchases.
• Wholesaler: This group constitutes those that buy large quantities of live broilers and resell in small units to people in the market. • Institutional consumers: This group constitutes the fast food operators and restaurant owners in town who need a substantial supply of dressed broilers everyday for use in their daily operations. This groups’ demand is all year round. • Individual Consumer: These groups of people are those that make daily or weekly purchases for themselves or their families from shops and markets.
TARGET MARKET SEGMENT STRATEGY
Our broilers will be well dressed, frozen and we will observe all food production practices/standards in our production processes. The broiler will be dressed according to the required specification of each customer.
The market is very large and underserved. The supply of broiler by the few large farms is not enough to meet the demand in the market. As a result most food caterers also depend on small...