In every business, the owners must determine first how much it costs to get into that business – the investment – and then determine how much profit can be expected from selling the product or service provided by the asset. Poultry farming is no different, but the commercial success of a poultry farm is most dependent on the economics of the inputs – how much the chicks cost, how much the feed cost, how much the utilities cost, how much my labour cost, and can I keep my mortality below 5%! These costs can vary from batch to batch, so farmers must keep good records to calculate profitability at the end of EVERY batch. A typical investment in a standard (not tunnel-ventilated) broiler house for 10,000 birds may be anywhere from $50,000 to $150,000, which, if borrowed from a lender, must be repaid regularly. If it is your cash being invested, you will expect to get that cash back over the life of the pen, or else there is no sense in investing.
Using a ‘small farmer’ example of 100 broilers per batch, and based on prices at the time of writing, we can make some calculations on profitability (see diagram overleaf). We can assume that mortality is only 5% (no more than five chicks die for every 100 bought), that the chicks are in the best health and therefore convert quality feed into body weight at a rate of at least 2 to 1, where 2 kilograms of feed build 1 kilogram of body weight. This small farmer is selling to friends and family at $10.00 per kilogram on average. With these assumptions, he should profit by around $3 to $4 per bird! Suppose the farmer’s management is outstanding and none of the birds dies, or the birds convert the feed to body weight at a rate of 1.75 to 1 (only 1.75 kg of feed needed to produce 1 kg of body weight), OR the farmer has a premium market that pays $12.00 per kg for whole birds. In that case, profit increases significantly in our example. High mortality will quickly eliminate profitability, especially at later stages of growth when your feed investment is also lost. 5% mortality (2% in brooding, 3% through the rest of the grow-out) is acceptable.
So, success depends heavily on the input from the farmer – good management usually translates into good results! Litter is the most overlooked but one of the most critical considerations of successful poultry farming. Wet or contaminated litter should permanently be removed; litter should be disinfected at the end of the batch if it is being reused. The feed should never run out; pen temperatures should never be too hot or cold. Feed supplements and vitamins can promote good feed conversion and good health. The farmer will see low mortality and good feed conversion numbers if these guidelines are followed. Feed is the most expensive input in a broiler’s growth cycle, so ensuring the feed is good quality and provides all of the necessary nutrients is extremely important. Buying cheap feed does not always translate into good profits either, as cheap feeds usually don’t contain nutrients in the right proportions – or they are old and contain toxins – so the broilers do not grow as efficiently. Even though the feed costs less, you will need more of it over a longer growing period to get the birds to market size.
Downloads
