Detailed Broiler Farm Project Report for 10,000 Birds (With PDF)

Introduction to 10,000 Broiler Farm Project Report

Hello,

My name is Temi Cole, the author of The Big Book Project.

Whilst there are many broiler farm project reports published online,

I decided to publish this one to give you 3 unique benefits (brand new – just for you):

A comparison ROI (return on investment) outcome using 4+1 broiler rearing model
- …all other broiler project reports seen online used All-In-All-Out rearing.
Guide notes to help you understand the workings of any poultry project report
Give you a PDF to print off and study later (click the big orange button above).

So if you are looking for a detailed sample broiler farm project report AND analysis,

(Using a multi-flock, high cash flow rearing model)

This is it!

A little hint…

P.S.

In case the thought crosses your mind, this report was produced using Poultry Project Reporter software.

It’s a custom-built, web-based automatic poultry project report writer.

I exclusively built and use this software to write all my consultancy project reports.

Why?

To save me time (and money)…PLUS, to produce the most detailed reports anywhere.

And it does just that.

It’s:

accurate,
quick,
& easy

Because of it, I am now able to produce the most detailed poultry project reports that I have seen anywhere online…

…literally taking minutes to calculate complex proposals that otherwise would take weeks to write.

(I wouldn’t dream of doing it any other way now. And yes, I recommend it.)

Contents

Introduction to 10,000 Broiler Farm Project Report
How I Put This Report Together
Things To Keep In Mind When Reading This Broiler Farm Project Report
Assumptions
Indian Government Subsidies For Poultry Farming Projects
A quick note on broiler housing
Economics of broiler farming to with a production capacity of 10,000 birds (using 4+1 rearing model)
But why a negative net present value? That isn’t good, is it?
Now, over to you…

How I Put This Report Together

I worked out this broiler farming project report using these methods and conditions:

It’s based in India. (So all prices are quoted in Indian Rupees.)
I loosely based the report on data input prices and costs from 6 source publications:
- Odishavet.com (Dr. Ashesa Kuamar Kar – a veterinary officer with the Government of Odisha, in Subarnapur district)
- Dr. Vishnu Vardhan Reddy Pulimi – Animal Nutritionist, Dairy Consultant and Veterinary Assistant Surgeon (VAS) at Government of Andhra Pradesh
- Krishi Vigyan Kendra (Kendrapara, Odisha) Agricultural Extension
- Tamil Nadu Agricultural University
- Vikaspedia.in – part of the national level initiative – India Development Gateway (InDG)
- NABARD (India) National Bank of Agriculture and Rural Development
  - …this was because they are credible sources of Indian based poultry project research. (No point in reinventing the wheel. These are currently the gold standard online.)

Things To Keep In Mind When Reading This Broiler Farm Project Report

I must remind you that these conditions should be kept constant when interpreting:

Commercial strain broiler birds, which consistently will be used for every batch.
The sale prices and cost prices, of course, are subject to change – driven by market forces.
Strict biosecurity and husbandry methods should be followed to maintain optimum broiler flock performance.

Pro tip: I recently launched a custom resource library called Poultry Project Hub.

The aim is to help you understand EXACTLY how to write a winning broiler farm project report.

It has over 20,501 words, 200+ rows of data tables, as well as 30+ screenshots/images, sample calculations, case studies and more.

I recommend using it to help you get your report watertight. Click here to find it.

Assumptions

Also, you must take into account these assumptions when reading this report:

Availability of input items like (chicks, feed etc.)
Proximity of the farm location to a viable marketplace
Demand for broiler meat
Trade stability (import and export balance)
Availability of feed

Indian Government Subsidies For Poultry Farming Projects

Subsidised funding for such projects is offered by the government in the form of a Poultry Venture Capital Fund (PVCF-EDEG).

The goal of the Government in offering such subsidies is 3-fold:

Encourage agri-entreprenurial start-up
Increase production of existing operations
Diversify the breeds and types of poultry raised commercially

Who can apply?

Farmers
Entrepreneurs
Non-Governmental Organisations
Social Enterprises…and more

How they work

Subsidy eligibility is typically broken down by region.

With priority funding allocation given to hard to reach communities like Ladakh and Kargil, for example.

All subsidies are paid back-ended.

In other words, are paid as a lump sum once you’ve cleared all loan repayments. This way your credit is discounted.

To qualify, you need to have been approved for a bank loan, with a certain degree of self-equity (margin money) invested.

How much you get

Subsidy monies are calculated and allocated as percentages of the overall project investment requirement.

Depending on the type of scheme, like APL or BPL for example,

You could expect to receive between 25% – 50% of your project requirement.

How much you need to fund

The margin money you need is 10%. The rest will be supplied by loan monies.

What you can spend the money on

There are 24 qualifying components for which you could be awarded subsidy money, including:

type of poultry enterprise (e.g. breeding farm for low input technology bird, or hybrid broiler unit)
refrigerated transport vehicle
processing units

Learn more about poultry farm loans and subsidies here.

A quick note on broiler housing

I based this project on deep litter, open-sided, brick broiler houses built on concrete foundations.

Something similar to this one, in Maharashtra State – India Poultry Farm No.1:

You can find more on alternative poultry house styles here.

Economics of broiler farming to with a production capacity of 10,000 birds (using 4+1 rearing model)

The following tables contain the data of this broiler farm project report (made using Poultry Project Reporter):

TOTAL PROJECT COST

A summing up of the total amount of funds your project will need to start:

One-Off Capital
Poultry House Construction
	3,500,000
Civil Building Construction
	60,000
Other Construction
	400,000
Feeders
	105,000
Drinkers
	105,000
Cages
	0
Vehicles
	0
Equipment
	140,000
Utility Installations
	90,000
TOTAL: One-off Capital Cost
	4,400,000
Working Capital
Chicks
	2,940,000
Feed
	11,840,850
Labour
	522,000
Livestock Insurance
	91,350
Vet Fees
	91,350
Bird Processing Fees
	0
TOTAL: Expenses
	15,485,550
Overheads
Electricity
	145,000
Maintenance & Repairs
	50,000
Administrative Labour
	9,600
Marketing
	30,000
Contingency
	18,500
TOTAL: Overhead Cost
	253,100

TOTAL: Working Capital Cost
	15,738,650
Funding
Total Project Cost
	20,138,650
Margin Money
	3,020,797.5 (15%)
Bank Loan
	17,117,852.5

BROILER FEED COST

This is the cost of feeding your 4 simultaneously reared broiler flocks of 2,500 birds (each) using the 4+1 rearing system:

Feed Price
Feed Cost per KG
	23
Rest Period
	2 Weeks
Flock Feed Consumption (KG)
TOTAL: Feed Consumed by Flock (Year 1)
	422,887.5
TOTAL: Feed Consumed by Flock (Year 2)
	456,356.25
TOTAL: Feed Consumed by Flock (Year 3)
	456,172.5
TOTAL: Feed Consumed by Flock (Year 4)
	456,487.5
TOTAL: Feed Consumed by Flock (Year 5)
	456,172.5
TOTAL: Feed Consumed by Flock (Year 6)
	456,356.25
Flock Feed Cost
TOTAL: Flock Feed Cost (Year 1)
	9,726,412.5
TOTAL: Flock Feed Cost (Year 2)
	10,496,193.75
TOTAL: Flock Feed Cost (Year 3)
	10,491,967.5
TOTAL: Flock Feed Cost (Year 4)
	10,499,212.5
TOTAL: Flock Feed Cost (Year 5)
	10,491,967.5
TOTAL: Flock Feed Cost (Year 6)
	10,496,193.75
Currency Symbol (Abbreviated)
	Rs.

POULTRY FARM LOAN REPAYMENT SCHEDULE

This is the monthly schedule for repaying the principal sum of Rs. 17,117,852.50 + interest over a course of 72 months (6 years):

Loan Metrics
Principal
	17,117,852.5
Interest Rate
	12
Effective Interest Rate
	0.01
Term (Years)
	6
Term (Months Converted)
	72
Instalment
	334,657.31

Interest 1
	171,178.53
Principal 1
	163,478.785
Balance 1
	16,954,373.72

Interest 2
	169,543.74
Principal 2
	165,113.57
Balance 2
	16,789,260.14

Interest 3
	167,892.6
Principal 3
	166,764.71
Balance 3
	16,622,495.43

Interest 4
	166,224.95
Principal 4
	168,432.36
Balance 4
	16,454,063.08

Interest 5
	164,540.63
Principal 5
	170,116.68
Balance 5
	16,283,946.4

Interest 6
	162,839.46
Principal 6
	171,817.85
Balance 6
	16,112,128.55

Interest 7
	161,121.29
Principal 7
	173,536.02
Balance 7
	15,938,592.53

Interest 8
	159,385.93
Principal 8
	175,271.38
Balance 8
	15,763,321.14

Interest 9
	157,633.21
Principal 9
	177,024.1
Balance 9
	15,586,297.04

Interest 10
	155,862.97
Principal 10
	178,794.34
Balance 10
	15,407,502.71

Interest 11
	154,075.03
Principal 11
	180,582.28
Balance 11
	15,226,920.42

Interest 12
	152,269.2
Principal 12
	182,388.11
Balance 12
	15,044,532.32
Year 1 Only – Interest
	1,942,567.54
Year 1 – Cumulative Interest
	1,942,567.54

Interest 13
	150,445.32
Principal 13
	184,211.99
Balance 13
	14,860,320.33

Interest 14
	148,603.2
Principal 14
	186,054.11
Balance 14
	14,674,266.22

Interest 15
	146,742.66
Principal 15
	187,914.65
Balance 15
	14,486,351.58

Interest 16
	144,863.52
Principal 16
	189,793.79
Balance 16
	14,296,557.78

Interest 17
	142,965.58
Principal 17
	191,691.73
Balance 17
	14,104,866.05

Interest 18
	141,048.66
Principal 18
	193,608.65
Balance 18
	13,911,257.4

Interest 19
	139,112.57
Principal 19
	195,544.74
Balance 19
	13,715,712.66

Interest 20
	137,157.13
Principal 20
	197,500.18
Balance 20
	13,518,212.48

Interest 21
	135,182.12
Principal 21
	199,475.19
Balance 21
	13,318,737.29

Interest 22
	133,187.37
Principal 22
	201,469.94
Balance 22
	12,913,782.72

Interest 23
	129,137.83
Principal 23
	205,519.48
Balance 23
	12,913,782.72

Interest 24
	129,137.83
Principal 24
	205,519.48
Balance 24
	12,708,263.24
Year 2 Only – Interest
	1,677,583.79
Year 2 – Cumulative Interest
	3,620,151.33

Interest 25
	127,082.63
Principal 25
	207,574.68
Balance 25
	12,500,688.56

Interest 26
	125,006.89
Principal 26
	209,650.42
Balance 26
	12,291,038.14

Interest 27
	122,910.38
Principal 27
	211,746.93
Balance 27
	12,079,291.21

Interest 28
	120,792.91
Principal 28
	213,864.4
Balance 28
	11,865,426.81

Interest 29
	118,654.27
Principal 29
	216,003.04
Balance 29
	11,649,423.77

Interest 30
	116,494.24
Principal 30
	218,163.07
Balance 30
	11,431,260.7

Interest 31
	114,312.61
Principal 31
	220,344.7
Balance 31
	11,210,915.99

Interest 32
	112,109.16
Principal 32
	222,548.15
Balance 32
	10,988,367.84

Interest 33
	109,883.68
Principal 33
	224,773.63
Balance 33
	10,763,594.21

Interest 34
	107,635.94
Principal 34
	227,021.37
Balance 34
	10,536,572.84

Interest 35
	105,365.73
Principal 35
	229,291.58
Balance 35
	10,307,281.26

Interest 36
	103,072.81
Principal 36
	231,584.5
Balance 36
	10,075,696.76
Year 3 Only – Interest
	1,383,321.25
Year 3 – Cumulative Interest
	5,003,472.58

Interest 37
	100,756.97
Principal 37
	233,900.34
Balance 37
	9,841,796.42

Interest 38
	98,417.96
Principal 38
	236,239.35
Balance 38
	9,605,557.08

Interest 39
	96,055.57
Principal 39
	238,601.74
Balance 39
	9,366,955.34

Interest 40
	93,669.55
Principal 40
	240,987.76
Balance 40
	9,125,967.58

Interest 41
	91,259.68
Principal 41
	243,397.63
Balance 41
	8,882,569.95

Interest 42
	88,825.7
Principal 42
	245,831.61
Balance 42
	8,636,738.34

Interest 43
	86,367.38
Principal 43
	248,289.93
Balance 43
	8,388,448.41

Interest 44
	83,884.48
Principal 44
	250,772.83
Balance 44
	8,137,675.58

Interest 45
	81,376.76
Principal 45
	253,280.55
Balance 45
	7,884,395.03

Interest 46
	78,843.95
Principal 46
	255,813.36
Balance 46
	7,628,581.67

Interest 47
	76,285.82
Principal 47
	258,371.49
Balance 47
	7,370,210.18

Interest 48
	73,702.1
Principal 48
	260,955.21
Balance 48
	7,109,254.97
Year 4 Only – Interest
	1,049,445.92
Year 4 – Cumulative Interest
	6,052,918.5

Interest 49
	71,092.55
Principal 49
	263,564.76
Balance 49
	6,845,690.21

Interest 50
	68,456.9
Principal 50
	266,200.41
Balance 50
	6,579,489.8

Interest 51
	65,794.9
Principal 51
	268,862.41
Balance 51
	6,310,627.39

Interest 52
	63,106.27
Principal 52
	271,551.04
Balance 52
	6,039,076.35

Interest 53
	60,390.76
Principal 53
	274,266.55
Balance 53
	5,764,809.8

Interest 54
	57,648.1
Principal 54
	277,009.21
Balance 54
	5,487,800.59

Interest 55
	54,878.01
Principal 55
	279,779.3
Balance 55
	5,208,021.29

Interest 56
	52,080.21
Principal 56
	282,577.1
Balance 56
	4,925,444.19

Interest 57
	49,254.44
Principal 57
	285,402.87
Balance 57
	4,640,041.32

Interest 58
	46,400.41
Principal 58
	288,256.9
Balance 58
	4,351,784.43

Interest 59
	43,517.84
Principal 59
	291,139.47
Balance 59
	4,060,644.96

Interest 60
	40,606.45
Principal 60
	294,050.86
Balance 60
	3,766,594.1
Year 5 Only – Interest
	673,226.84
Year 5 – Cumulative Interest
	6,726,145.34

Interest 61
	37,665.94
Principal 61
	296,991.37
Balance 61
	3,469,602.73

Interest 62
	34,696.03
Principal 62
	299,961.28
Balance 62
	3,169,641.45

Interest 63
	31,696.41
Principal 63
	302,960.9
Balance 63
	2,866,680.55

Interest 64
	28,666.81
Principal 64
	305,990.5
Balance 64
	2,560,690.05

Interest 65
	25,606.9
Principal 65
	309,050.41
Balance 65
	2,251,639.64

Interest 66
	22,516.4
Principal 66
	312,140.91
Balance 66
	1,939,498.73

Interest 67
	19,394.99
Principal 67
	315,262.32
Balance 67
	1,624,236.4

Interest 68
	16,242.36
Principal 68
	318,414.95
Balance 68
	1,305,821.46

Interest 69
	13,058.21
Principal 69
	321,599.1
Balance 69
	984,222.36

Interest 70
	9,842.22
Principal 70
	324,815.09
Balance 70
	659,407.28

Interest 71
	6,594.07
Principal 71
	328,063.24
Balance 71
	331,344.04

Interest 72
	3,313.44
Principal 72
	331,343.87
Balance 72
	0.17
Year 6 Only – Interest
	249,293.78
Year 6 – Cumulative Interest
	6,975,439.12
Currency Symbol (Abbreviated)
	Rs.

BROILER PRODUCTION

This is the production estimation for the no. of broiler birds successfully raised and sold at market according to the planned intervals of 4+1 rearing system:

Rearing System & Frequency of Broiler Sales
	(Multiple 4+1) Fortnightly (Once Every 2 Weeks)
Batch Size of Broiler Birds
	2,500
Expected Bird Mortality Per Batch
	125
Key Broiler Production Inputs
Cost per Broiler Chick
	35
Broiler Meat Price per KG
	75
Average Marketable Broiler Weight (kg)
	2.952

Rest Period
	2 Weeks
Broiler Chicks Cost
TOTAL: Broiler Chick Cost (Year 1)
	2,940,000
TOTAL: Broiler Chick Cost (Year 2)
	2,940,000
TOTAL: Broiler Chick Cost (Year 3)
	3,031,875
TOTAL: Broiler Chick Cost (Year 4)
	2,940,000
TOTAL: Broiler Chick Cost (Year 5)
	3,031,875
TOTAL: Broiler Chick Cost (Year 6)
	2,940,000
Broiler Production
TOTAL: Broiler Birds Produced (Year 1)
	76,125
TOTAL: Broiler Birds Produced (Year 2)
	86,625
TOTAL: Broiler Birds Produced (Year 3)
	84,000
TOTAL: Broiler Birds Produced (Year 4)
	86,625
TOTAL: Broiler Birds Produced (Year 5)
	84,000
TOTAL: Broiler Birds Produced (Year 6)
	86,625
Carcass Weight
Carcass Yield (%)
	68.8
TOTAL: Broiler Carcass Weight Produced in KG (Year 1)
	154,608.05
TOTAL: Broiler Carcass Weight Produced in KG (Year 2)
	175,933.3
TOTAL: Broiler Carcass Weight Produced in KG (Year 3)
	170,601.98
TOTAL: Broiler Carcass Weight Produced in KG (Year 4)
	175,933.3
TOTAL: Broiler Carcass Weight Produced in KG (Year 5)
	170,601.98
TOTAL: Broiler Carcass Weight Produced in KG (Year 6)
	175,933.3
Broiler Sales Revenue
TOTAL: Broiler Sales Revenue (Year 1)
	11,595,603.75
TOTAL: Broiler Sales Revenue (Year 2)
	13,194,997.5
TOTAL: Broiler Sales Revenue (Year 3)
	12,795,148.5
TOTAL: Broiler Sales Revenue (Year 4)
	13,194,997.5
TOTAL: Broiler Sales Revenue (Year 5)
	12,795,148.5
TOTAL: Broiler Sales Revenue (Year 6)
	13,194,997.5
Currency Symbol (Abbreviated)
	Rs.

BROILER MANURE PRODUCTION

This is a running estimate of the manure produced and revenues made from rearing the broiler flocks on this farm:

Price of Manure
Manure Price per KG
	3
Feed Consumption Comparative Baseline
Rest Period
	2 Weeks
Feed vs. Manure Conversion Rate
Manure to Feed Conversion Rate
	0.7628458
Flock Manure Production
TOTAL: Manure by Flock (Year 1)
	322,597.95
TOTAL: Manure Produced by Flock (Year 2)
	348,129.45
TOTAL: Manure Produced by Flock (Year 3)
	347,989.28
TOTAL: Manure Produced by Flock (Year 4)
	348,129.45
TOTAL: Manure Produced by Flock (Year 5)
	347,989.28
TOTAL: Manure Produced by Flock (Year 6)
	348,129.45
Manure Sales Revenue
TOTAL: Manure Sales Revenue (Year 1)
	967,793.85
TOTAL: Manure Sales Revenue (Year 2)
	1,044,388.35
TOTAL: Manure Sales Revenue (Year 3)
	1,043,967.84
TOTAL: Manure Sales Revenue (Year 4)
	1,044,388.35
TOTAL: Manure Sales Revenue (Year 5)
	1,043,967.84
TOTAL: Manure Sales Revenue (Year 6)
	1,044,388.35
Currency Symbol (Abbreviated)
	Rs.

GUNNY BAG RESALE REVENUE

By reselling your used poultry feed gunny sacks there is potential supplementary income to be made in your broiler farm (this data, of course, is linked to your broiler feed consumption):

Gunny Bag Price Metrics
Size of Gunny Bag
	50 KGS
Resale Price per Gunny Bag
	21
Flock Feed Consumption
TOTAL: Feed Consumed by Flock (Year 1)
	422,887.5
TOTAL: Feed Consumed by Flock (Year 2)
	456,356.25
TOTAL: Feed Consumed by Flock (Year 3)
	456,172.5
TOTAL: Feed Consumed by Flock (Year 4)
	456,356.25
TOTAL: Feed Consumed by Flock (Year 5)
	456,172.5
TOTAL: Feed Consumed by Flock (Year 6)
	456,356.25
No. of Gunny Bags
TOTAL: Gunny Bags Received (Year 1)
	8,458
TOTAL: Gunny Bags Received (Year 2)
	9,127
TOTAL: Gunny Bags Received (Year 3)
	9,123
TOTAL: Gunny Bags Received (Year 4)
	9,127
TOTAL: Gunny Bags Received (Year 5)
	9,123
TOTAL: Gunny Bags Received (Year 6)
	9,127
Gunny Bag Resale Income
TOTAL: Gunny Bag Resale Income (Year 1)
	177,618
TOTAL: Gunny Bag Resale Income (Year 2)
	191,667
TOTAL: Gunny Bag Resale Income (Year 3)
	191,583
TOTAL: Gunny Bag Resale Income (Year 4)
	191,667
TOTAL: Gunny Bag Resale Income (Year 5)
	191,583
TOTAL: Gunny Bag Resale Income (Year 6)
	191,667
Currency Symbol (Abbreviated)
	Rs.

BROILER FARM SALES REVENUE

A combined statement of all your estimated farm sales revenue made:

Broiler Production
Year 1 – Broiler Meat Income
	12,368,644
Year 2 – Broiler Meat Income
	14,074,664
Year 3 – Broiler Meat Income
	13,648,158.4
Year 4 – Broiler Meat Income
	14,074,664
Year 5 – Broiler Meat Income
	13,648,158.4
Year 6 – Broiler Meat Income
	14,074,664
Manure Production
Year 1 – Manure Sales Income
	967,793.85
Year 2 – Manure Sales Income
	1,044,388.35
Year 3 – Manure Sales Income
	1,043,967.84
Year 4 – Manure Sales Income
	1,044,388.35
Year 5 – Manure Sales Income
	1,043,967.84
Year 6 – Manure Sales Income
	1,044,388.35
By-Products
Year 1 – By-Product Sales Income
	0
Year 2 – By-Product Sales Income
	0
Year 3 – By-Product Sales Income
	0
Year 4 – By-Product Sales Income
	0
Year 5 – By-Product Sales Income
	0
Year 6 – By-Product Sales Income
	0
Re-Sale Gunny Bags
Year 1 – Gunny Bag Resale Income
	177,618
Year 2 – Gunny Bag Resale Income
	191,667
Year 3 – Gunny Bag Resale Income
	191,583
Year 4 – Gunny Bag Resale Income
	191,667
Year 5 – Gunny Bag Resale Income
	191,583
Year 6 – Gunny Bag Resale Income
	191,667
Project Income
TOTAL: Year 1 – Income
	13,514,055.85
TOTAL: Year 2 – Income
	15,310,719.35
TOTAL: Year 3 – Income
	14,883,709.24
TOTAL: Year 4 – Income
	15,310,719.35
TOTAL: Year 5 – Income
	14,883,709.24
TOTAL: Year 6 – Income
	15,310,719.35
Gross Project Benefit
TOTAL: Gross Benefit
	89,213,632.38
Currency Symbol (Abbreviated)
	Rs.

DISCOUNTED CASH FLOW

Future forecasted cash flows for this broiler farm project, discounted by the comparative interest rate (which is a combination of India’s official inflation rate for 2020 and ICICI Bank offers Floating Rate Savings Bonds 2020):

Comparative Interest
Comparative Rate of Interest
	12.1
Discounted Cash Flows
Discounted Cash Flow (Year 1)
	-5,381,571.98
Discounted Cash Flow (Year 2)
	-532,897.37
Discounted Cash Flow (Year 3)
	-605,263.93
Discounted Cash Flow (Year 4)
	-28,206.1
Discounted Cash Flow (Year 5)
	-80,519.56
Discounted Cash Flow (Year 6)
	388,642.11
Net Present Value
Net Present Value of Future Cash Flows (NPV)
	-6,239,816.83

BENEFIT-COST RATIO

Ratio analysis of how much income vs. cost your overall project is scheduled to make:

Benefit-Cost Analysis
Benefit-Cost Ratio (B/C)
	0.93
Currency Symbol (Abbreviated)
	Rs.

But why a negative net present value? That isn’t good, is it?

Well, whether good or bad – it is honest.

(I’m never upset by the ROI outcome of an attempt at writing a project report. It’s there to tell me how to do things better.)

This particular set of conditions for this broiler farm using the 4+1 rearing method produce:

negative cash flow
a benefit-cost ratio below 1 i.e. loss making

Nil ROI.

Compared with other broiler farm project reports out there (which use All-In-All-Out or ‘AIAO’ rearing) this one seems unattractive.

But why?

(Good question.)

Looking at the detail, it’s using comparative price inputs and cost estiamtes.

So nothing revealing there…

Plus, it assumes land ownership already, just like most other project reports online that use AIAO rearing.

And so we look to the choice of rearing model…and there it is.

4+1 vs. AIAO broiler rearing model comparison

The 4+1 rearing system for broiler farming uses 5 birdhouses, not 1.

4+1 = better cash flow

The idea is that by rearing simultaneous flocks, you multiply your cash flows and smooth out business income.

In fact,

By adopting this model,

You can expect to go to market with a mature flock every 2 weeks (rather than every 6 weeks, as with AIAO method).

This adds great business advantage fueled by more consistent cash flow.

4+1 requires more capital

However,

The benefit of increased cash flow comes at the cost of having to build 5 houses…

(albeit hosting the same number of birds on your farm at any time e.g. 10,000 or 4x 2,500).

Although, the combined floor space of the 4+1 model buildings is the same as a 10,000 capacity birdhouse…

…there will undoubtedly be more effort and expense in building 5 separate houses.

Plus, 5 sets of feed wiring and storage containers etc.

There’s actually quite a bit of duplication involved.

Which presents an inconvenience to bird keepers too.

4+1 = higher operational expense

With up to 33 batches of broilers being produced every year using the 4+1 rearing model (compared to 6 with All-In-All-Out),

4+1 incurs greater operational expense because of routine repetition.

Activities like:

catch
bird transit
house cleaning
processing set-up

…for example, adds more cost to the bottom line of the multi-flock model.

Is there room for improvement?

One of the real value benefits of using the Poultry Project Reporter software is its ability to fine-tune poultry farming project reports.

A bit like a master craftsman gets his wood stock approximately in shape before adding perfecting refinements,

The 1st round results of using the Reporter software is like a rough 1st pass…

…then, I perform several tweaks to my numbers and inputs and model parameters to perfectly shape and hone my desired ROI outcome.

Where are things going wrong with the ROI in this report?

The key to this 4+1 rearing model ROI failure can be seen by taking a magnifying glass to the discounted cash flow (DCF):

Broiler Farming Project – Discounted Cash Flows

Discounted Cash Flow (Year 1)

-5,381,571.98

Discounted Cash Flow (Year 2)

-532,897.37

Discounted Cash Flow (Year 3)

-605,263.93

Discounted Cash Flow (Year 4)

-28,206.1

Discounted Cash Flow (Year 5)

-80,519.56

Discounted Cash Flow (Year 6)

388,642.11

What we see is a sliding scale of highly negative cash flow figures in Year 1 gradually improve until a clear profit is made in Year 6.

What caused this?

I traced this effect back to the loan repayment schedule. (Earnings after interest payments was the only clue I needed…this is when the earnings dipped into negative values.)

Because of the hefty loan, interest repayments tail off and end completely even in year 6,

This is when we see the farm profit surprisingly bounce back and we hit positive cash flow.

The loan is particularly large compared with the All-In-All-Out version, because of:

the additional capital expense of the houses
plus additional operational overheads like electricity bills for rearing simulatenous flocks etc.

Suggested profit tweaks

In this case, to raise the project’s BCR from a loss-making 0.93 to a profit-making >1, I suggest:

reducing the broiler house construction cost (perhaps using your in-house resource)
cheaper feed cost
cheaper chick cost
more ‘margin money’, less loan
government subsidy
more meat revenue
more manure revenue
more gunny bag revenue
add broiler by-product revenue

…these are almost 10 ways to notch up that 0.93 to a value above 1.

Discrepancies

One discrepancy with other reports online is meat yield. Poultry Project Reporter software that I used shoots for accuracy.

And as such, the carcass sales are adjusted for meat yield. This means the end bird weight is cut to 68.8% of the final weight for the sake of giving a realistic revenue figure.

In other words, as not to give you an inflated expectation on income – the software corrects the income figure.

Omissions

Because this project report is written as a comparison to the other staple efforts online,

In the interest of comparing apples with apples – it carries some common omissions.

(You’ll want to plug in these gaps within your project report.)

Here are some of them:

processing costs
transport fees
house cleaning costs
depreciation costs
deep litter costs

These costs are very REAL and would massively knock any broiler farming project report that left them out.

I would have included them in my report,

But again to help you make direct comparisons with reports out there, I keep parameters consistent.

(The Reporter software I use actually includes all of these omitted categories as standard. But it is also flexible enough to leave them out if you wish.)