Conduct market research to determine the size of the market and the types of eggs that are in demand. You should be able to identify which hens are laying and determine why your hens are not laying. Fredrick and his wife have 2,400,000 KSh. finding out what customers value and HOW MUCH they value it. The hatchery would normally be the supplier and the farm would be the customer. When making your decision about which breed or breeds to raise, keep in mind that commercial-type hens may give you a higher level of production initially, but other breeds tend to lay for more years. I can literally account for up to 5.235kg of feed being consumed by each broiler during a 49 days period (that 7 weeks). increase feed intake, decrease waste, save cost, increase profit. ft. I did it by teaching them strategies for raising the value bar of their business. These ought to be accounted for in your net profit calculations. PLUS have some money over for the family, then your enterprise would have been a success. There are financial key performance indicators (KPIs). I wanted a quick way you could immediately zoom into those areas. These small, cramped, barren cages cause a host of negative physical and psychological impacts. But how do they determine when they have laid the right number? For future laying flocks, keep in mind that light management is important from brooding through all laying periods. Miles, G.D. Butcher, and F.B. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. So. Decreases in the number of hours of light per day typically will put a flock out of production. For additional assistance in deciding which breed to choose, see the relatedarticle onwhich chicken breed is best for a small or backyard flock. Not just in year 1, but also across the first 6 years of trade. After this age, their productivity as a percentage of peak output reaches approximately 70%. divide this feed cost, by the number of eggs produced per layer bird on average, throughout the same 72 week batch cycle and you get: = 5.80 KSh. 0.35 KSh. profit per egg sold or 32% profit margin per sale. You can increase the amount of light slowly to 16 hours per day late in the egg production cycle to help keep the flock in production. Vertical integration is when two companies occupying separate stages for the value chain come together as one. Plus: it helped me program poultry farm financial planning software, write dozens of email newsletters, produce in-depth country by country poultry industry reports, and more. The flock comes into production quickly, peaks, and then slowly reduces the level of production. Trays are usually used to store fresh eggs from farms or at farmers' markets. An allowance of 2 square feet per hen typically is recommended for simple outdoor access. If part exchanged, Fredrick and his wife could land themselves the van for only. Have you considered the cost of growth in your business modelling? ), = 134,750 KSh. I made in the software what I call the ROI Analysis Sheet. Also, egg size increases and shell quality decreases each year. So by bringing down your FCR by a whole point you shave almost ~30% off your expenses. long linear feeders per 3,000 birds. These parties all need to be paid back for their provision to run your poultry business. And see what comes out of the wash, on paper. Keeping this reduced balance figure in the savings account instead produces the following number as the 6 year interest yield: = 904,172.07 KSh. For more information, read the related article onperches. Written by: Dr. Jacquie Jacob, University of Kentucky. That is, they start producing eggs when there are more hours of light per day. Say, your poultry farm cost $80,000 to set up or to buy from an existing owner. And as such takes a lot of capital investment and involves many risks. Feed cost is directly in line with the prices of ingredients. A key tool for me serving clients (or subscribers) is email marketing. MC is the money that every egg or kg of chicken meat contributes toward your poultry farms gross profit. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture. And as such you should account for the taxable sum to be an additional expense deducted from the ROI.). Against the price of egg quoted above of 9 KSh. I used to think of profit quite simply as money left over after paying the bills. Hens may live in backyard flocks for 6-8 years, and most flocks will produce eggs for 3-4 years. The internet is a major tool for my ability to communicate. I call this number your end-stage ROI, or payday. it is estimated that the electricity bill for the poultry houses per annum, particularly for the brooders heating will be: getting eggs to local hospitality customers like hotels and catering businesses weekly will run the following annual costs: other costs such as printing flyers, phone bill, internet etc. 30 crates =. But is this a feasible price for Fredrick to charge for his eggs, given his cost scenario? I know from step 1 if the farm in question is actually going to make money or not. That you should always expect to sell a business for more than you bought it. And of course, its great for sensitivity testing. It takes about 26 hours between laying an egg and the next one to develop. Because Fredrick and his wife will expect the farm enterprise to pay them back for the equivalent value of employed labour lost in savings to start the farm. And make clear to every team member the influence their duties have on achieving the goal. It is always good to have an additional source of calcium available. by his 6 year egg production figure, = 0.35 KSh. , which can cause health problems across the flock. Where I am, we are allowed to deduct the proportion of my phone bill used for business from my taxable income. I serve poultry farm owners as clients in the Philippines, Uganda, Ghana, South Africa and beyond. This field is for validation purposes and should be left unchanged. Calculate this as accurately as you would any other business profit. And as we just mentioned in the section above. Net profit is money that needs to go out of your business for either: Any people or agencies which have indirectly or directly supported the success of your farm. This gives an overall headcount of 3,000 birds at any one interval. Lifespan of a hen. When raising pullets from day-old chicks, brood the chicks as you would any other type of chick. That rounds off how you ought to go about calculating your poultry farm profits. In case your eggs are not up to 900 per day. Its well known that birds will eat more feed when particles are presented at a certain size. force poultry businesses to react quickly to cushion the blow to profit. If so, they will stop production, go through a molt (loss of feathers), take a break, and start laying again. ft. layer farm. per kilo. Average egg production per bird on hen day basis (hen-day average) 3. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. of start-up equipment costs absorbed by each egg sold over the first 6 years of trade, take this away from our EBITDA per egg and we get, = 2.72 KSh. The only problem with my decision to use email was: The success of my poultry farming newsletter! Poultry Project Reporter 2.0 - fastest way to write your project report online. So when considering poultry farm profits when. That is, they start producing eggs when there are more hours of light per day. i.e. There are many different types of egg packages, which vary both in design and packaging material used. Obviously, you can choose from several breeds. Spent hens therefore fetch a lower price at the meat market and are usually sold as cheaper domestic meat alternative. 0.14 KSh. A hens body begins forming an egg shortly after the previous egg is laid, and it takes 26 hours for an egg to form fully. Dependent upon the rearing system chosen by Fredrick (1+2), FAO guidelines estimate his poultry farm to produce: [That number is set to fluctuate year on year as the overlap of batches and the relative ages of the birds, and therefore production, is not identical every year.]. to build that winning plan. For a little professional assistance, he gets in touch with, The minimum recommended floor space for the brooder cum grower house according to the FAO (, Food and Agriculture Organization of The United Nations. ) Instead of feeding 1,000 birds with #500,000 naira monthly, it is very much possible to expend #62,000 to #72,000 naira monthly for the same course which is just between 12% to 15% of the regular monthly feeding cost of #500,000 naira. They would expect, however, that their Kienyiji chicken layer farming business to replenish their savings within 6 years of labour. Reduce feed cost and put a SERIOUS dent into your production expense. Some people like having a flock composed of different breeds. A sort of brooder phase for the farm being in need of some financial nurture. Either way, Im interested to hear from you. See the relatedarticle onbrooding poultry hatchlingsfor information about the basic care of chicks. Moreover, chickens have a desire to perch, so providing for this behavior contributes to animal welfare. compounded interest earned over 6 years (. But before we get into calculating sales revenue from eggs, we ask, Are there any other revenue streams which layer poultry farms typically make?. So, when I started The Big Book Project I looked for a way to help poultry entrepreneurs avoid these nasty surprises. We are neither tax advisors nor claim to be offering this type of service. Tweaks in this area could move the FCR needle for you from 2.5 to 1.5 reducing your feed bill by 40%. of lost savings interest. How long do layers lay eggs? per dozen), Extra Large (27 oz. Every business needs to be maintained and also grow. And its by this that every business succeeds. This means he will have 1x brooder cum grower house and 2x layers houses. How much, per month, on average would they need to make above their earnings to replace the start-up capital used for one-off purchases over the 1st 6 years of trade? The use of perches also helps concentrate much of the manure in a single location for easier cleaning of the poultry house. Say, without necessary investment where would your business be? Because phone calls used for business purposes should therefore be paid for by the business. You can increase the amount of light slowly to 16 hours per day late in the egg production cycle to help keep the flock in production. To make the profit analysis clear & traceable, we wanted you to relate the profits below on a per egg basis. As a result, the number of sexing errors is reduced, so you are less likely to get an unwanted rooster. Wilson, R.D. The expected supply required for consumption for a total flock size of 3,000 birds is as follows, according to the FAO guidelines: Peak water intake projected for 2,000 mature layers is: 640 litres per day, Peak water intake projected for 1,000 grower birds is: 160 litres per day. Its when business owners apply different cost or other business conditions to their model in theory. can infest poultry flocks and stress the hens. And you get: 800 litres of fresh drinking water required per day, to refresh your flock of 3,000 birds. But now we need to make some sense of the potential sales revenues on offer within this proposed poultry farm of Fredricks. They have vehicles, buildings, computing etc. Immediate financial feasibility. increase in after-tax earnings (16% increase). During the cold months, chickens need more fuel to keep their bodies warm. If your poultry farm had a cost of production of $50,000 per year. So, they will naturally consume more food. To give a grain-by-grain snapshot of what: adds to your businesss ability to stay afloat. ft. per bird x 1,000 birds = 1,360 sq. According to proposed Kenyan tax law changes Fredrick could be liable to pay the following tax rates depending of course on farm earnings: Fredrick figures out that if his available earnings per egg is 2.23 KSh, And he is expected to sell approximately 550,000 eggs per annum (including breakages etc.). I really couldnt say what it would look like for your poultry farm. the following profit calculations are based on egg revenue only not including revenue derived from manure sales or spent hen sales. A crate of egg contains 30 eggs. The site has a good supply of drinking water being a functional smallholding. You need to know how to gauge the number of eggs your flock can produce and be aware of the variables that affect egg production. Table egg layers had an average lay rate of about 0.81 eggs per day in 2019, whereas broiler-type layers averaged only 0.61 eggs per day. in after-tax earnings 114,224.66 KSh. This is a very advanced commercial strategy for increasing profitability. A layer chicken lay at least 1 egg daily and a create of egg consists of 30eggs 1000 layers Will produce at least 30 creates daily ( 1000 layers birds Divided by 30 eggs ) Also, you can get a light sensor so that the light bulb does not come on when natural daylight is available. of lost compounded savings interest over 6 years, divide this figure by 6 (to spread it evenly over 6 years worth of earnings), = 114,224.66 KSh. He has found adurable plastic egg trayto present his eggs on for his wholesale buyers. But in the long run, it could pay off in increased earnings and ROI. If you are raising the birds indoors, you can give them just 8 hours of light per day. Fredrick will buy a water storage tank from which he will fill his drinkers to place in his hen houses. Required fields are marked *. If your hens stop laying, you may be able to identify the source of the problem by asking the following questions: Factors affecting egg production in backyard chicken flocks. Our approach is not the only way to look at this kind of project. The most in-depth guide to poultry farming anywhere, right now. Poultry Project Reporter 2.0 is the fastest and most flexible way to write your winning layer or broiler proposal. Mather, University of Florida, How much will my chickens eat? 2. The down size is complexity. If you are exposing them to outdoor conditions, you are limited by the number of hours of light per day in your area, of course. Our methods are based on our 10+ years of experience in professional business & financial management. And now, back to Fredricks profit story . Crop farmers are continually looking for cheaper and more natural alternatives to fertiliser. Increase your spending to benefit from discounts. plus the brooder cum grower house that equals: 5,240 sq. But how about optimising profit within your poultry business? Hens lose the yellow pigment in a specific order. simply measure the feasibility of making a profit at this price against the calculated costs.