Layer Farming Project Report Model for 500 Birds

Introduction to layer chicken farming project report for 500 birds

Layer farming means raising egg-laying chickens for commercial egg production business. Though, layer chickens are such a special species of hens, which need to be raised from when they are one day old. Commercial layer strains are now obtainable with traits of high egg production and high feed conversion efficiency. Based on the farm-size, layer (for eggs) farming can be the main source of family income and gainful employment to farmers throughout the year. They start laying eggs commercially from 18 to 19 weeks of age. They remain to lay eggs continuously till their 72 to 78 weeks of age. They can produce one kg of eggs by consuming about 2.25 kg of food during their egg-laying period.

A guide of 500 layer chicken farming project model report

Farmers categorize their poultry birds into different stages such as brooding, growing, pullet, and layering. Though, layering starts when the birds are of 20 weeks of age. Once the birds reach the egg-laying age they are given layer feed and they are transferred to the egg-laying quarters at the age of 18 weeks. Unproductive, sick birds should be removed from the flock. Such birds are normally culled. The layering period lasts up to 120 weeks. It is necessary to replace the old flocks in an existing poultry farm while maintaining the old flock is a costly affair. Also, egg production should be steady to meet market requirements.

Scope for layer chicken farming project and its national importance

Today, poultry is one of the fastest-growing segments of the agricultural sector in India. In poultry production, value-added products utilizing poultry eggs, culled birds for human consumption have been developed. Though, only 6% of the eggs produced in the country are converted into processed egg products mainly for export. Poultry layer farming is gaining popularity in India due to its lower cost production and growing demand for eggs. India ranks third in the world by producing about 3.8 billion kilograms in the shell. The leading egg-producing states in India are Andhra Pradesh, Tamil Nadu, Haryana, Maharashtra, and Punjab. There is a rise in egg production in India owing to the growth in human consumption costs and lower production costs. High-quality chicks, equipment, vaccines, and medicines are now obtainable through both public and private players. Technically and professionally competent guidance is obtainable to the farmers. The managerial practices have improved and disease and also mortality incidences are reduced to a great extent.

Different types of layer breeds

According to the nature and color of the egg, layer hens are of mainly two types. Short descriptions of these two types are listed below;

White Egg Laying Hens – This egg-laying type of hens are comparatively smaller in size. These hens relatively eat less food, and the color of the eggshell is white. Isa White, Lehman White, Nikchik, Bab Cock BV-300, Havard White, Sever White, Hi-line White, Bovanch White, etc. are some popular white egg-laying chickens.

Brown Egg Laying Hens – Brown egg-laying hens are relatively larger and they eat more foods, compared to white egg layers. Lay bigger eggs than other laying breeds. The eggshell is brown colored. There are many types of brown layer obtainable. Among those Isa Brown, Sever 579, Lehman Brown, Hi Line Brown, Bab Cock BV-380, Gold Line, Bablona Tetro, Bablona Harko, Havard Brown, etc. are suitable for commercial layer poultry farming.

Egg production for layer poultry farming

Egg production from layer farming depends on care and farm management. If you take good care of birds and manage them properly, then the production and profit will be high. Egg production from a Layer Poultry Farming depends on care and management.

Within the first 20 weeks of age, 5% of hens start laying eggs. About 10% of birds start laying at their 21 weeks of age and when they reach about 26 to 30 weeks of age, they produce highly. Although, it can be different depending on their strain. After laying a maximum number of eggs, they generally stop laying for a few days. After this period, egg production might reduce slowly Egg laying rate, and the size of eggs increases gradually. Then, the hens grow until their 40 weeks of age. Also, the weight and size of eggs increase until their 50 weeks of age.

Egg collection in Layer poultry farming

Eggs should be collected regularly from the nests. In the deep litter system, it is collected 5 times a day and twice a day in a cage system. Farmers attach an egg roll-out to the nest. Then, this facilitates egg collection outside the pen. Bloodstains and manure on the shell of the eggs could be washed with water. The cleaned eggs should be refrigerated immediately else they may develop bacterial contamination.

Financial assistance available from banks for layer poultry farming project

A loan from banks with a refinance facility from NABARD is obtainable for starting poultry farming. The technical officers attached to the bank manager can help or give guidance to the farmers in preparing the project report to obtain a bank loan. For poultry farming schemes with large outlays, detailed project reports will have to be prepared. Banks provide financial assistance for the below purposes;

  • For the construction of brooder/grower and layer sheds, feed store, and quarters, etc.
  • For purchase of poultry equipment such as feeders, waterers, and brooders, etc.
  • For creating infrastructure items for the supply of electricity, feed, and water, etc.
  • For purchase of day-old chicks and ready to lay pullets.
  • For meeting the working capital requirement in respect of feed management, medicines and veterinary aid, etc. for the first 5 to 6 months (that means till the stage of income generation).
  • Though, if the land is purchased for establishing a poultry farm, the land cost can be treated as a party’s margin up to a maximum of 10% of the total cost of the project.

Scheme formulation of layer farming project report for a bank loan

A scheme can be prepared by the beneficiary after consulting local technical persons of State Animal Husbandry, private commercial hatcheries. If possible, they visit the progressive layer farms in the area and also discuss the profitability of farming. Good practical training on a layer farm will be highly desirable, before starting a farm. The scheme contains information on land, water and electricity facility, the experience of entrepreneurs and the type of assistance obtainable from State government, and local hatcheries. It should include data on the proposed capacity of the farm, the total cost of the project margin money to be provided by the beneficiary, requirement of bank loan, estimated annual expenditure, income and profit, and the period for repayment of loan and interest.

Sanction of bank loan and its allocation

After ensuring technical feasibility and financial viability the scheme is sanctioned by the bank. The loan is allocated in kind in 2 or 3 stages against the creation of specific assets such as the construction of sheds, purchase of equipment and machinery, the recurring cost during the growing period on the purchase of the first batch of chicks, feed, medicines and vaccines, electricity and water, labor expenses, etc.

Feed management in Layer farming project

Good quality, balanced feed should be given at the right age. Layer feed which is given at 17 weeks must be started gradually by the age of 16 weeks. Avoid excess consumption and similarly, the feeder should be cleaned regularly to prevent rat infestation on the leftover feed.

In the layer poultry industry, feed quality and feed intake directly impact the outcome of the product. With Suguna layers and Lohmann layers, feed intake capacity is genetically well established. Though, due care must be taken while monitoring feed to the birds throughout its lifecycle.

The chicken’s energy requirements through the feed are mainly determined by factors such as body weight, production rate, egg size, temperature, air movement, and feathering. Essential nutrient and mineral supply through feed management define the overall productivity of the bird. Feed types change at different stages of the bird’s lifecycle. Suguna’s experts will guide you throughout and also help you administer the right feed types throughout the process.

Layer poultry farm business plan for 500 birds

In case if you miss this: 1000 Broiler Chicken Farming Project Model Report.

Layer Poultry.
Layer Poultry.

Layer farming with a unit size of 500 birds is explained below. This is Indicative and applicable input and output costs and the parameters observed at the field level can be incorporated. Costs and profits depend upon Layer poultry farm management, quantity, and quality of the feed provided. It mainly depends on disease management, vaccinations, and other factors. This information is intended to provide the interested producer an idea of the overall financial activity involved in a 500 layer operation.

Capital expenditure in layer poultry farming project:
S.No Particulars Rate Estimated Cost (in Rs)
1 Cost of construction one no. of brooder and rearing shed space size 1’6″ per bird low-cost poultry shed with cemented floor size about 800 sqft Rs90/sqft 72,000/-
2 Cost of Poultry equipment such as Feeder, water, brooder& misc. items Rs25/bird 12,500/-
3 Cost of other expenditure on power, admin., and other unforeseen expenditure 2.50/bird 1250/-
4 Cost of electrification 4 % of civil work of poultry shed 3000/-

Total                                                     88,750/-

Recurring expenditure in layer poultry farming project:
S.No Particulars Rate Estimated Cost (in Rs)
1 Cost of Day-old Kalinga Brown Parent Line Chicks – 500 Rs45/each 22,500/-
2 Expenditure on purchase of Feed per Cycle
3 Cost of Chick Mash requirement (0-8week ) 2 kg =1,000kg                     Grower mash ( 9-20 week) 5 kg  =2500kg

Layer mash ( 21-72 week)40kg   = 20,000 kg


Rs15/Kg Rs15/Kg Rs14/Kg 15,000/-



4 Cost of Poultry Medicines, Vaccines, Litter and insurance coverage Rs 4.50/bird 2,250/-
Project cost 3,57,250/-
Capital Expenditure 88,750/-
(+) Recurring Exp. 3,57,250/-


Term loan 75% = 3,34,500/-
Income Generated Mortality 6% = 30 no’s


Returns in layer poultry farming project:
S.No Particulars No. of Eggs Rate Revenue Received
1 Total no. of table eggs produced from 470 no’s Layers @ 230 eggs/ annum 1,08,100
2 Good eggs collected= 80% of total production 86,480 Rs.5/each 4,32,400/-


3 20% broken eggs collected= 21,620

out of which:

70% Sold= 15,134

30% Discarded 6,486

Average broken eggs/ day 21 nos.

( 10 months)











4 Sale of culled bird 470 nos. at the age of 72 week age, average weight 2 kg 500 gm= 1175kg 70kg 82,250/-
5 Gunny bag= 335 nos Rs.20/each 6700/-
6 Poultry manure from 470 birds Rs.1.50/each 705/-
(-) Capital Expenditure A III &IV 4,250/-


You may also like this: Chicken Manure Composting Process, Benefits.

( Recurring Expenditure) 3,57,250/-
GROSS PROFIT (Rs 5,47,823- Rs 3,57,250) 1,90,573/-
Net Profit  
Less Depreciation on 9,057/-
Poultry Shed 10 % 7182.00  
Poultry equipment 15% 1875.00  
Net profit/bird is Rs.363.03 1,81,516/- (For 500 birds)


Disease management in egg poultry farm

Layer birds suffer from different diseases such as Newcastle disease, fowl pox, parasites, etc. that affect egg production. The common symptoms are sneezing, rattling, uncoordinated movements, paralysis, twisting head and neck, etc. And sometimes in case of diarrhea, the discharge is whitish or bloody. The veterinarian should be contacted immediately if any of the abnormal disease developing symptoms are noticed. Also, the birds should be vaccinated at the correct time to prevent developing diseases.

As soon as they are hatched the chicks are administered with Marek’s vaccine and also fowl pox vaccine. Below is the vaccination schedule;

Age of the Birds Disease Application
3-4 days Newcastle Disease Intraocular or Intranasal
4 weeks Fowl Pox Wing Web
6 weeks Internal parasites Mixed with the water and feed


Disease prevention

Clean surroundings, adequate ventilation, regular checking of birds, and also following the vaccination schedule religiously are the best ways to arrest diseases. Dead birds should be checked for the cause and visceral organs must be examined.

Vaccination and its importance for layer poultry farming

Vaccination is a must for layers for keeping them free from all types of diseases. The main advantage of poultry vaccination is listed below;

  • A timely vaccination schedule makes disease resistance power in the body of the chick.
  • Help to keep the hen free from infective layer poultry diseases.
  • Disease prevalence will be less.
  • The mortality rate will reduce.
  • The low mortality rate is equal to more production that is equal to more profit

Importance of marketing in layer poultry farming project

Eggs are stored in a cool room at 13°C and transported in an insulated truck. Unfortunately, shops selling eggs do not store them under ideal conditions. In the home and shop situation, it is best to store them at normal refrigerator temperatures (4-6°C). Marketing involves a range of prices, depending on the sizes of egg, different brands, or differences which attract particular buyers. Free-range and fat modified eggs are among the varieties obtainable. You may apply the same information for calculating cost and profits in 1000, 5,000, and 10,000 layer farming project report. You may like How to Make Money from an Egg Hatchery Business.


  1. It’s really helpful to me of getting through your note , I’ll really appreciate receiving more in my email

  2. I want to start a layer poultry farm . the information given in this article is very helpfull for me. So thank you so much


Please enter your comment!
Please enter your name here