Further reading: Pricing Your Poultry – Penn State University. by the number of eggs produced (550,000 eggs) and you get: = 0.19 KSh. every grain)…. His cost therefore to buy his first batch would be: 89,250 KSh. This method indicates income potential from a flock. ...now, we divide the total start-up equipment cost by the number of eggs to be produced over the first 6 years of production to get the start-up equipment proportion absorbed per egg produced/sold: = 408,500 KSh. Example: A poultry farm contains 3000 hens of leghorn breed on the first of February 2008. He plans on buying 100 units, in total costing him 30,000 KSh. We declare once more an important definition. Capital Expenditure I Cost of construction one no. Please enter your username or email address to reset your password. - 0.19 KSh. Sl. He aims for a laying capacity of 2,000 layer birds (adopting this layer rearing model of 1+2, simultaneously he will also keep 1 batch of 1,000 brooder/growers alongside the mature layers.). But is this a feasible price for Fredrick to charge for his eggs, given his cost scenario? We’ll take an industry average…to be discussed further on.). You may have seen such production parameters in layer manuals. Capital Expenditure I Cost of construction one no. long linear feeders per 3,000 birds. available pre-tax earnings - 367,950 KSh. Fredrick and his wife also want to replenish the savings pot remember. of lost compounded savings interest over 6 years. from their savings to fund the start-up they leaves their new savings account balance as: 1,365,200 KSh. They would expect however, that their Kienyiji chicken layer farming business to replenish their savings within 6 years of labour. GUIDE TO COMPOUNDING LAYERS AND BROILER FEED – CALCULATE. He does this in order to maintain the feasibility of his earnings expectations, in the event of average bird mortality. potential income from manure sales in year 1. Total No. per egg. The answer is: you’re asking the wrong question. How do we correctly allocate the costs detailed above? Frederick will utilise a disused double garage as an egg store room. This gives an overall headcount of 3,000 birds at any one interval. Fredrick discovers in his desk research FAO estimates for layer feed consumption. Your email address will not be published. Feel free to comment below – we welcome your thoughts. Whilst distinct, i.e. One impacts on another and also feeds another. What we don’t see is what happens when they don’t provide the benefits they should to your business. different from one another, the definitions of the various types of profit above are not separate from one another. Together, Fredrick and his wife have plans to visit model Kenyan poultry farms to learn ‘first hand’ what it will take to run a successful layer farm. The minimum recommended floor space for each layer house according to the FAO is 1.94 sq. Because there are many ways to charge for the use of a poultry farming product…. In the first year, according to the 1+2 layer rearing model, he intends to buy 2 batches. Calculate average egg production on Hen Housed basis. per chick. income tax payable per annum, = 30,662.50 KSh. Do you have pen and paper ready? ft. Fredrick's 1st year cost of bird feed therefore would be: 1,583,431.50 KSh. annual available earnings. For a little professional assistance, he gets in touch with The Big Book Project and we offer him an initial free poultry project consultation. Fredrick's onsite electric hook-up is insufficient to reach the poultry houses once built. (c) % of egg production during the month = Total no. Fredrick and his wife have 2,400,000 KSh. So how do we allocate indirect costs proportionally to each product sold? Average egg production per bird = 60,000/2834=21.17, Percent of egg production during the month = 60,000/79,350=0.7561  = 75.6%. Let's see what Fredrick makes of his income calculations... Having done a little research he finds out that a tray of 30 eggs is sold to retailers for about 280KSh. With an expected mortality rate of 5%, Fredrick buys 1,050 chicks in each batch. of birds per month = (on hen-day basis), = Actual number of Hen days/No. The total number of eggs laid during the last year is divided by the number of birds in the flock at the beginning of the Year. by his 6 year egg production figure... =  0.35 KSh. A van of the approximate specification necessary has been located for: 930,000 KSh. COMMERCIAL LAYER FARM. (roughly 7,000 KSh, per month). ...having deducted 1,034,800 KSh. “How much profit can I make from running a…”, [Seconded by –“Is it profitable to run a…”]. Not just in year 1, but also across the first 6 years of trade. ...plus the brooder cum grower house that equals: 5,240 sq. Fredrick has friends in the building trade and plenty of raw materials at his home from previous improvement projects. Why? Have any professional feedback on the methods used or definitions/figures quoted? ft. (about a 10th of the size of a professional football pitch – a modest size) of available land on a smallholding home in Kisumu and wants to run his layer farm from this site. Well, there is no fixed profit in poultry farming since the profits in any poultry farming depends on many factors such as feed management, climatic conditions, diseases, proper and timely vaccination and marketing. Answer: market-based pricing model verified by cost-based pricing. That is, of course, in addition to supplying them with a working household wage. By definition, they are not directly related to the production of either chicken meat or eggs. Find out the average egg production per hen during the month. ft. per bird x 1,000 = 1,940 sq. COMMERCIAL LAYER FARM. But before we start…(!) (for running costs), = 2.72 KSh. We now breakdown Fredrick’s poultry farm situation on paper – one definition of profit, at a time: Our adopted pricing model was market-based and cost-based combined. The price per kilogram of layer mash on average is 38 Ksh. The investor knows that the value of money continually decreases with the increasing cost of living. Average No. When Does The 72 Weeks Of Optimal Productivity Start. He currently has a used car for domestic travel which he would happily trade in for the right van. The total, number of eggs produced were 96000. Fredrick needs a van to fulfil his wholesale egg deliveries. Transport - getting eggs to local hospitality customers like hotels and catering businesses weekly will run the following annual costs: Miscellaneous - other costs such as printing flyers, phone bill, internet etc. 12,460 eggs divided by 42 eggs per tray = 297 trays. But before we get into calculating sales revenue from eggs, we ask…, “Are there any other revenue streams which layer poultry farms typically make?”. At week 28, Fredrick buys another batch of 1,000 chicks (1,050 actual number). Although, Fredrick and his wife will fund the start-up process entirely by themselves using savings from the previous 5 years employment. Broiler poultry farming business is a very profitable business, and many people are making money all over the world by farming the birds. (for savings replenishment), = 2.23 KSh. This business case study just wouldn’t be complete without stating some obvious (…as well as, not so obvious) assumptions upon which the enclosed calculations are based: We highly recommend you go back through the detail of this example and apply your own situational conditions, currency, prices, costings and all other parameters to see how things might look for your project. compounded interest earned over 6 years (assuming the rates remained the same and no withdrawals were made). If part exchanged, Fredrick and his wife could land themselves the van for only. Numbers of peoples do not know about poultry farm in India | cost or poultry farming | cost | project report. Ali's Veterinary Wisdom - educating the farmers of the nation" is an initiative taken in livestock and poultry sector which is dedicated for the welfare of farmers and animal husbandry entrepreneurs. poultry farm profit calculation. He wants to set-up a layer poultry farm selling eggs using KARI Kienyiji breed chicken. © 2019 FA Solutions - All Rights Reserved | Ali Veterinary Wisdom. Profit is calculated as total revenue less (minus) total expenses.”. Fredrick finds out that in order to keep his chicks well heated in the brooder house, he will need 2x 250 Watt bulbs.