Module 3: Case Study – Milestone 1

THELMA AKPATA

Nexford University

BUS 6100: Global Business

July 24, 2022

commercialized subsectors of Nigerian agriculture for several reasons, the fact that chicken offers several benefits

over other animals explains the popularity of poultry production. Poultry birds are excellent converters of feed into

usable protein in the form of meat and eggs, the unit cost of production remains moderately low, and the return on

investment is high. As a result, farmers only require minimal cash to establish a chicken farm. Furthermore,

independent of religious views consumer acceptance is high. The poultry business in Nigeria offers a special

opportunity for trade and investments in several value chain segments. More than 13 million families rely on the

poultry sector for their primary source of income; hence, the industry ranks as Africa's largest producer of chicken

eggs and the fourth-largest producer of poultry meat with an annual contribution to real GDP of 6 to 8 percent, of

the agricultural GDP (Punch Editorial Board, 2022). Our poultry farm will be situated in Edo state, Nigeria, one of

the commercial hubs of the country, we would later expand to a neighboring country, Cotonou, the most populous

city and economic capital of the Benin Republic.

Governing Bodies

The poultry industry is regulated by several bodies, and the way to seamlessly get through them is by

having all the required documents readily available.

1. Corporate Affairs Commission: This is the body empowered by the Nigerian constitution for business

registration.

2. The National Agency for Food and Drug Administration and Control (NAFDAC): For regulating and

controlling the manufacture, importation, exportation, and distribution of food and water.

3. The Federal Ministry of Agriculture and Rural Development (FMARD): This is the agency responsible for

overseeing the poultry industry in Nigeria.

4. Ministry of Health Certification: This body ensures the business location and environment are hygienic and safe

health wise

5. Poultry Association of Nigeria (PAN): This is the trade union for poultry farmers in Nigeria.
 Challenges and Opportunities

The biggest challenge is bird diseases. Diseases such as Avian flu and its likes can be rampant in the

industry. The movement of the poultry and its products can pose a great threat to the return on investments as some

of the birds might die or be lost in transit. Egg glut can become a challenge in cases where there are more produced

products than are needed per time. Another challenge is the government's weak and unreliable infrastructure and

policies in the industry.

However, the opportunities are numerous as poultry products, a nutritious source of protein, are being

consumed more regularly as the year passes. Products made from poultry are utilized in industries for things like

pharmaceutical and medicinal needs. For instance, chicken products like eggs are used to make vaccines; similarly,

the waste products are utilized as plant nutrients in the soil as well as animal feeds. Egg whites are employed in

bookbinding and textile dyeing. White eggs may likewise be used to make leather coloring and ink used for

printing. While egg yolk is utilized to make paint, soap, and shampoo. Feathers from chickens make excellent

mattresses, pillows, and insulating materials.

Sustainability

The company's sustainability practices include the following:

1. According to SDG 6 - Clean Water and Sanitation: The poultry farm will supply clean and safe drinking water

to the neighborhood and would always ensure a neat environment for the community at large. Poultry wastes may

be recycled to make organic fertilizer, biogas, synthetic charcoal, and fish feed; feathers can be used to make

bedding, and broken eggs and intestines can be used to make fish feed.

2. According to SDG 7 - Affordable and Clean Energy: Organic waste from poultry helps in the production of

biogas, which is an excellent source of solar energy. By reusing the waste, we would extend clean energy to the

community by making it affordable, thereby solving one of the country’s problems of poor and no electricity.
3. According to SDG 8 - Decent Work and Economic Growth: Our company's diverse operations would play an

important part in promoting economic growth, it also would create job possibilities for Nigerians, whether via the

sale of poultry birds or through farm laborers as breeders, hatchers, distributors, and so on, thereby eradicating

unemployment, redundancy, and other criminal inclinations.

Supply Chain Management

Our business model would be a B2B, our start-up process would include buying farmlands, poultry

tools, cages, drinkers, feeders, Parches, crates, nests, solar systems, egg incubators, waste disposal systems, etc.

Our chain of farm laborers would include farm managers, bird feeders, sorters, environmental sanitizers, meat and

egg processors, packagers, distributors, marketers, and so on. The manufacturing chain begins with the parent

breeders, then the hatched eggs when matured would be distributed to farmers via intermediaries, who would rear

and sell the processed meat and eggs to the targeted buyers.

We would leverage technology, via third-party vendors, we shall build our website containing an e-commerce

section where direct sales of products can happen, develop an Enterprise Resource Planning software that

would handle orders, logistics, worker’s information, payroll, etc. for the farm, and integrate the Radio-

Frequency Identification (RFID), which helps in effective order tracking and precise delivery.

Adequate end-to-end supply chain management would include sourcing, inventory, distribution,

transportation, warehousing, sales, and customer service alongside the aforementioned, which would result

in the effective and efficient use of our products and strengthen our return on investment and ultimately the GDP

of the state and country.

In conclusion, Poultry farming although not without risks, comes with a lot of opportunities. Nigeria's

poultry industry has grown significantly in recent years, only 30% of the demand for chicken meat and eggs is

satisfied locally, (Ejiro, 2017) thereby leaving enormous room for industrial growth.
 References

Ejiro, Q. M. (2017, December 11). “Nigerians produce only 30% of chicken consumed in the country.”

The Guardian Nigeria News - Nigeria and World News. https://guardian.ng/features/nigerians-

produce-only-30-of-chicken-consumed-in-the-country/

Punch Editorial Board. (2022, March 30). Saving the poultry industry from collapse. Punch

Newspapers. https://punchng.com/saving-the-poultry-industry-from-collapse/

The poultry chain | Gateway to poultry production and products | Food and Agriculture Organization

of the United Nations. (n.d.). Www.fao.org. https://www.fao.org/poultry-production-

products/socio-economic-aspects/poultry-chain/en/

United Nations. (2015). Sustainable Development Goals. United Nations Sustainable Development;

United Nations. https://www.un.org/sustainabledevelopment/sustainable-development-goals/