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How to overcome each of the following weaknesses of a layer poultry business: WEAKNESSES OF POULTRY FARMING NO FLEXIBLE PRICES The prices of

How to overcome each of the following weaknesses of a layer poultry business:

 

WEAKNESSES OF POULTRY FARMING

 NO FLEXIBLE PRICES

The prices of chicken are fixed and you can't negotiate over the price. Whatever price food and price regulatory authority set, you have to accept that even if it doesn't meet your expenses.

HIGH TRANSPORTATION COST

The transportation cost of bringing the small chicks to the farm and then distributing the final product to the stores, hotels, and local food markets is very high. If the retail price is good, then it pays off all the expenses and generates revenue. Otherwise, you have to pay it from your pocket.

HIGH INITIAL INVESTMENT

It requires a plethora of capital to establish a well-controlled poultry farm that could generate some revenue. It's difficult to make a profit from ordinary poultry farms. In fact, the failure rate is higher among the poultry farms that don't follow the controlled environment.

NO DIFFERENTIATION

Your competitors are selling the same product (chickens) whatever you're selling. In other words, there's no product differentiation in this industry. It doesn't give anyone a competitive edge over the other.

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