of it to fund the 1 off capital purchases to start their chicken farm. every grain)…. Example: A poultry farm contains 3000 hens of leghorn breed on the first of February 2008. ft. minimum floor space of housing. Not just in year 1, but also across the first 6 years of trade. His total cost of building poultry housing will be: 52,000 KSh. ...divide this figure by 6 (to spread it evenly over 6 years worth of earnings)... = 114,224.66 KSh. By definition, they are not directly related to the production of either chicken meat or eggs. Please enter your username or email address to reset your password. Want to get your own scenario put through such paces by a professional poultry business consultant? poultry farm profit calculation. From every aspect…every side…any type of production. Making 9 KSh. divided by 72 months (6 years). potential income from manure sales in year 1. per kilogram... = 117,934 KSh. One average, because his chicks will produce much less manure than mature hens, he averages out his calculation of manure production in year one to be extrapolated from an equivalent flock size of 1,000 mature birds... ...as such he estimates 130,000 lbs. This process works for any country…any bird. If you haven’t already downloaded the PDF version of this post by clicking on the button above: Just in case at any time you want to return where you left off, it’s definitely worth taking a copy. In order to confidently appreciate the real profitability of our poultry farm at the most finite or ‘granular’ level (i.e. ... [It’s no surprise, your hatchery’s price per chick for a 20,000 layer farm, might be quite different from a 2,000 layer farm.]. 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. And many ways and factors involved in paying for goods and services used in operating a poultry farm. Your email address will not be published. In year one (1st 52 weeks) he will not have produced any spent hens, being 72 weeks old by definition. Keeping this reduced balance figure in the savings account instead produces the following number as the 6 year interest yield: = 904,172.07 KSh. But whether the broiler poultry farming business is more profitable than layer will depend greatly on your skills, marketing strategies and the starting capital you employ. Your email address will not be published. Meet our start-up Kenyan poultry farmer – Fredrick. Within this article, I plan to take you through a reliable method for calculating the profit of any poultry farm. - 6.09 KSh. The calculation for EBITDA per egg sold, taking into account the running costs above is as follows: = 2.91 KSh. How do we correctly allocate the costs detailed above? This by general yardstick becomes a loss making exercise. Answer: Total Absorption Costing method (TAC). To make the profit analysis clear & traceable, we wanted you to relate the profits below on a ‘per egg’ basis. Sorry, you have Javascript Disabled! Here in this article, we will see how these parameters can be calculated and what does it mean with examples. But you can get land for your farm in so many ways. 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.). Now we clearly understand thus far that the primary output of layer farm production is eggs. of Hen days should be = 2000 X 30 days = 60,000, Loss of “Hen-day” = (22 X 100)+ (15 X 160) + (9 X 190) + (2 X 240) = 6790, Therefore, actual no. Although, Fredrick and his wife will fund the start-up process entirely by themselves using savings from the previous 5 years employment. They would expect however, that their Kienyiji chicken layer farming business to replenish their savings within 6 years of labour. - 0.14 KSh.

Plan future Cash Flow Statements to avoid Cash Flow shortfalls. = 744,325.34 actual earnings per anuum average within the first 6 years of trade. In business operations, there are two types of cost. – Corporate Finance Institute, Net Profit Definition – Financial Times Lexicon, Pricing Your Poultry – Penn State University, Poultry Farming Project: 12 Steps To Writing Your Report & Proposal (PDF), example 10,000 bird layer farm project report, According to 'proposed' Kenyan tax law changes, How To Start A Poultry Farm: Guide For Beginners (2020) Inc. PDF. of hen days = 28 (Feb.) X 3000 = 84,000, Loss of Hen days = (28-7) X 90+(28-14) X 120+(28-20) X 105+(28-24) X 60, = 21 X 90 + 14 X 120 + 8 X 105 + 4 X 60 = 4,650, 1. This method indicates income potential from a flock.