Chicken Farming as a Business in Ukraine

Breeding laying hens as a business is a promising direction of agricultural entrepreneurship in Ukraine. It attracts with relatively small initial investments and quick payback. In 2024, the poultry population in Ukraine amounted to approximately 184 million, and according to forecasts, chicken production in Ukraine will grow to 1.34 million tons. Egg production for 10 months of 2024 reached 4.9 billion pieces, which is close to the level before the full-scale invasion.

This industry demonstrates stable growth despite economic challenges. In this article, we will examine key aspects of organizing a chicken farming business in Ukraine, which will be useful both for experienced farmers seeking ways to improve agricultural enterprise efficiency and for beginners who are just planning to start their own chicken breeding business.

Features of Chicken Farming in Ukraine

Chicken breeding as a business has its nuances. First of all, it is necessary to determine the direction: egg, meat or combined production. Each option has its advantages and technological features.

For example, egg production involves raising laying hens that begin laying eggs from 4-5 months. The most popular breeds are Leghorn and Lohmann Brown. These chickens can lay up to 300 eggs per year with proper care.

The meat direction focuses on raising broilers. These birds quickly gain weight and are ready for slaughter after 6-7 weeks. Popular breeds are Cobb 500 and Ross 308.

Combined chicken farming as a business combines obtaining eggs and meat. Suitable breeds include Rhode Island Red and Plymouth Rock. They have good egg production and sufficient meat productivity.

Key success factors:

• selection of quality young stock;
• balanced feeding;
• compliance with sanitary standards;
• process automation;
• effective product marketing.

Modern technologies allow optimizing production and increasing profitability. The use of automatic feeding, watering and egg collection systems significantly reduces labor costs. Implementation of LED lighting and climate control improves poultry housing conditions.

Read also: Technology of milk and dairy products production in Ukraine

Advantages of Chicken Farming Business

Chicken breeding as a business has several advantages:

• quick return on investment – from 6 to 12 months;
• stable demand;
• possibility to start on a small scale;
• relatively simple farming technologies;
• low competition in the organic products segment.

In addition, poultry farming allows diversifying income. Besides eggs and meat, you can sell down, feathers, and manure as organic fertilizer. This increases the overall profitability of the business.

An important advantage is the possibility of automating most processes. This allows optimizing personnel costs and increasing production efficiency. Modern technologies make poultry farming less labor-intensive than before.

Disadvantages of Chicken Breeding Business

Despite its attractiveness, poultry farming has certain risks and difficulties:

• high dependence on feed quality and veterinary services;
• risks of epidemics and mass poultry mortality;
• seasonal price fluctuations;
• need for significant investments in business scaling;
• strict sanitary requirements and control by government agencies.

These disadvantages can be minimized through proper planning and modern technologies. For example, using quality vaccines and maintaining biosecurity reduces disease risks. Diversifying sales channels helps overcome seasonal demand fluctuations.

To effectively overcome economic challenges when launching or expanding a poultry farm, consider agricultural installment opportunities. The WEAGRO service offers favorable financing conditions for purchasing equipment and young stock. This allows optimizing cash flows at the start of chicken breeding business.

Profitability of Chicken Farming

Poultry farming profitability depends on many factors but is steadily growing. In January 2024 it was $0.37/kg, and in April 2024 it increased to $0.41/kg. With proper production organization, this indicator can be even higher.

Key factors affecting chicken farming profitability:

• production scale;
• poultry breed selection;
• feed quality and housing conditions;
• level of process automation;
• product sales channels.

Consider a farm with 1,000 laying hens. With average egg production of 280 pieces per year, gross collection will be 280,000 eggs. At an average selling price of 2.5 UAH per egg, annual income will be 700,000 UAH. Costs: feed, maintenance and other operational expenses – approximately 450,000 UAH/year. Thus, net profit from laying hen business can be 250,000 UAH, and profitability – about 35%.

It is important to consider that profitability can fluctuate significantly depending on season and market conditions. Therefore, production diversification and establishing stable sales channels are key success factors.

Registration of Chicken Breeding Business

To legally conduct chicken farming business, it is necessary to complete the registration procedure. The optimal form for small and medium farms is individual entrepreneur (FOP).

Main registration steps:

1. Selection of taxation system (usually second group of single tax).
2. Submitting application to state registrar.
3. Opening bank account.
4. Obtaining veterinary passport for the farm.
5. Registration of facilities with the State Service for Food Safety and Consumer Protection.

It is important to choose correct KVED codes:

• 01.47 – Raising of poultry;
• 01.62 – Support activities for animal production;
• 10.12 – Production of poultry meat.

Obtaining a veterinary passport is a mandatory stage of chicken breeding business. It is necessary to contact the local state veterinary service. Specialists will conduct farm inspection to verify compliance with sanitary standards.

Registration of facilities with the State Service for Food Safety and Consumer Protection is required for farms planning to sell products. This guarantees production compliance with all necessary safety standards.

Read also: Farm Enterprise: What It Is, Types, How to Name and Register

Business Plan for Chicken Farming

A properly prepared business plan for chicken breeding is the key to successful start of poultry business. It should include the following sections:

1. Project summary.
2. Product description (eggs, meat, other).
3. Market and competitor analysis.
4. Production plan.
5. Marketing strategy.
6. Organizational plan.
7. Financial plan.
8. Risk analysis.

The production plan describes in detail technological processes, necessary equipment and personnel. It is important to consider production seasonality and provide ways to optimize costs.

Marketing strategy should include target audience analysis, sales channels and product promotion methods. Special attention should be paid to positioning – for example, emphasizing environmental friendliness or local production.

The financial plan should contain detailed calculations of investments, operational costs, income forecast and break-even point calculation. This will help assess project feasibility and payback periods.

Costs of Chicken Breeding Business

Startup investments in poultry business depend on production scale and chosen technology. Approximate budget for a farm with 1,000 heads may look like this:

• construction/reconstruction of premises – 500,000 UAH;
• equipment (cages, feeding and watering systems) – 300,000 UAH;
• purchase of young stock – 100,000 UAH;
• feed for first 2 months – 80,000 UAH;
• veterinary preparations and disinfection – 20,000 UAH;
• other expenses (documentation, marketing) – 50,000 UAH.

Total investment in chicken breeding – approximately 1,050,000 UAH.

Operational costs will include:

• feed – 60% of total expenses;
• personnel wages – 15%;
• utilities – 10%;
• veterinary services – 5%;
• equipment depreciation – 5%;
• other expenses – 5%.

It is important to consider seasonal fluctuations in feed and energy prices when planning the budget. It is also recommended to create a reserve fund for unforeseen expenses.

To optimize financial burden for business, consider agricultural installment opportunities from WEAGRO service. This allows distributing costs with deferment for up to 180 days and reaching operational profitability faster.

Obtaining Veterinary Passport

Veterinary passport is a mandatory document for legal conduct of chicken farming business. It confirms farm compliance with sanitary standards and safety of produced products.

Passport obtaining procedure includes the following stages:

1. Submitting application to local state veterinary service.
2. Farm inspection by specialists.
3. Conducting laboratory tests of water, feed, products.
4. Processing and issuing passport.

For successful inspection, it is necessary to ensure:

• proper poultry housing conditions;
• quality feed and clean water;
• regular disinfection of premises;
• maintaining veterinary record journal.

The obtained passport is valid for one year, after which it must be re-registered. Regular inspections help maintain high farm biosecurity level.

Schedule for Launching Chicken Breeding Business

Launching poultry business is a phased process that usually takes 6-8 months. Approximate schedule may look like this.

	Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8
Business plan development	+	+
Location selection	+	+
Business registration		+	+	+
Obtaining permits		+	+	+
Construction/reconstruction			+	+	+
Equipment purchase					+
Equipment installation					+
Veterinary passport						+
Young stock purchase							+
Production start								+

When planning launch, it is important to consider seasonality. Optimal time for start is spring or early autumn, when temperature conditions are most favorable for young stock.

Parallel to production preparation, it is worth establishing sales channels and marketing strategy. This will allow reaching planned sales indicators faster after launch.

Chicken Farming Technology

Chicken farming technology depends on the chosen direction – egg, meat or combined. Each has its features and requirements for poultry housing.

Broiler Farming Technology

Broilers are bred meat chicken breeds that quickly gain weight. Broiler chicken farming technology has the following features:

• intensive fattening for 6-7 weeks;
• housing in spacious premises with controlled microclimate;
• use of high-protein feeds;
• strict adherence to vaccination schedule, disease prevention and broiler breeding;
• slaughter upon reaching weight of 2-2.5 kg.

Most popular broiler chicken farming breeds are Cobb 500 and Ross 308. These hybrids are characterized by high growth rate and efficient feed conversion.

Laying Hen Farming Technology

Key aspects of housing and laying hen farming technology:

• phased breeding: young stock, replacement young stock, productive flock;
• light regime control to stimulate egg laying during laying hen breeding;
• balanced feeding with high calcium content;
• chicken farming in cages or on floor with nests;
• regular egg collection, sorting, packaging.

Most common egg breeds in Ukraine are Lohmann Brown and Hisex Brown. They can lay up to 300 eggs per year. Spanish chicken farming is also popular, although they are less productive.

Combined Direction Chicken Farming Technology

Combined direction chickens are suitable for small farms that want to obtain both eggs and meat. Features of their farming:

• selection of breeds with good egg production and meat productivity (Brahma, Rhode Island Red, Plymouth Rock breeding);
• housing on ranges or in spacious premises;
• balanced feeding considering nutrient requirements;
• possibility of natural chick hatching;
• slaughter of roosters and old hens for meat.

Regardless of chosen direction, modern poultry farming actively uses automated feeding, watering and microclimate control systems. This allows optimizing costs and increasing poultry productivity.

Conclusion

Chicken farming as a business in Ukraine has good prospects. Despite challenges related to war and economic situation, the industry shows signs of recovery.

Modern technologies allow significantly increasing poultry farming efficiency. Use of automated feeding systems, climate control and egg collection reduces labor costs and improves poultry housing conditions. LED lighting implementation optimizes light regime, which positively affects chicken productivity.

Export potential of the industry is also growing. In 2024, Ukrainian producers increased trade by 5.5%, selling 450 thousand tons of poultry meat, and began exporting eggs to new markets, particularly West African countries. This opens additional opportunities for industry development.

Therefore, with proper approach and use of modern technologies, chicken farming can become a profitable and promising business in Ukraine.

An important success factor in poultry farming is choosing the right financial strategy. WEAGRO service offers farmers favorable agricultural installment conditions with deferment for purchasing equipment and young stock. This allows optimizing cash flows and developing business faster.