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The FAO projects that “…world demand for animal-derived protein will double by 2050.”
And compared with alternative land-based options like cattle rearing, chicken farming for meat and eggs has distinct start-up benefits.
But what are the benefits of poultry farming?
And are there any drawbacks? [Read more…] about Benefits of Poultry Farming
I received a recent email question: “I need help in starting a small project of free range chicken…”
I thought, “..surely, they can’t be alone.”
Free range chicken rearing appeals to many poultry beginners.
Mainly because it’s the picture perfect ideal for our image of poultry farming.
Source: Dexter’s World
An open range, virgin pasture, tree-lined windbreak and hundreds or thousands of Rhode Island Red’s rummaging and roaming for forage.
And as for the many parts of the world where Rhode Island is fathomed an exotic…
The dream of rearing a locally sought after breed (perhaps Kadaknath or Road Runner, for example) in the backyard or adjoining land equally holds a certain nostalgic allure.
Source: Global Press Journal
But whether we say free-range or backyard, rearing poultry predominantly in the outdoors is our topic of focus here today.
By appearance alone, free range poultry farming is far cry from the indoor caged, semi-intensive model.
And reports show that the free range approach is fast growing in popularity.
This is stirring both new entrants and existing producers in their droves to get invested.
But why?
Consumer trend.
People across the world in increasing numbers are preferably looking for free range meat, avoiding intensively raised product and are willing to pay premium.
What’s driving this?
For some, it’s fashion. Others, it’s personal health. For many, the idea of improved animal welfare.
But ultimately, whatever the motive, dishes like this Kadaknath curry are fast selling out in restaurants and free range meat and eggs are flying off retail shelves:
Source: The Economic Times (India)
It’s undeniable that ‘free-range’ or ‘local, country bred birds’ is a globally sustainable economic trend. And is driving the adoption of this non-industrial agricultural modes of production.
In this article, I will show you how to start your own free range poultry farming business – regardless of country or breed.
Free range poultry holds different meanings depending on country.
And in some as governed by law.
“Free range birds must have access to the outdoors. However, since there is no legal definition of free range in Canada, this can vary from farm to farm.”
“For broilers to qualify as free range, the Broiler Production Code of Practice specifies that no more than fifteen birds may be kept per square meter in the poultry shed or housing.”
Source: southafrica.co.za
“…10 hectares of open land for them to run around on, as demanded by law…every free-range farmer knows that if you have 10 hectares, the chickens will only use nine…we have 6.7 hens per square metre. A free-range farm would typically have nine hens per square metre.”
Source: The Guardian
Top Tip: It’s fundamental to get your local legal definition of free range poultry farming.
Compared with semi-intensive models, small scale free range poultry farming has the following advantages:
However, as prerequisite, for small scale free-range poultry farming you do need:
Because of the points above, free-range typically favours owner/managers with experience of handling flocks. Their level of stockmanship naturally makes them competent to tackle the rigours of the discipline.
That said, previous experience is NOT essential.
Take Senthilvela, for example:
A former IBM IT project manager with no prior poultry farming experience.
Yet, today, he’s a very successful free range poultry farmer.
So, it’s evident…
…as long as you have a keen inquisitiveness and attention to detail regarding flock care – you too can make a good go of it.
Knowing Your Flock (KYC) with free-range poultry is perhaps of greater importance, especially as you are managing variable environmental factors.
Free-range poultry farming is on trend, globally.
The degree of demand varies, from country to country as you can imagine – and we’ll later look into specific examples.
But for now we’ll take the following case in isolation to identify the principle drivers of free-range poultry demand:
- Fee range eggs accounted for 62 percent of all production to pass through the country’s packing stations between July and September 2021.
- This is up from 58 percent in the second quarter of this year and 55 percent in the third quarter of 2020.
- Enriched cage production has fallen from 39 percent to 33 percent year-on-year, Defra’s figures show.
- The continued growth of free range egg production comes just four years from the target date set by many leading retailers for ending the use of all cage eggs.
- In the UK, all major retailers have committed to abandoning eggs from cages by 2025.
- Many leading food manufacturers, including Nestle, have also made the commitment.
- This year, some of the world’s biggest food companies joined in an initiative to boost supplies of cage-free egg product.
- It said the UK already had the highest proportion of free range layers of any European nation, adding it had developed a barn system that boasted a much higher standard than other countries.
Source: FarmingUK
Irrespective of the specific numbers and stats involved (because they may not be applicable to your country) take a look at the economic factors in the example above, which are driving the free-range trend.
It’s critical at this stage to make clear the difference between free-range and organic.
Here are two distinctions laid out by leading institutions:
As opposed to standard free range farms where anything goes feed-wise, organic farms must stick to synthetic chemical-free feeds. To be officially recognised as an organic farm, hens must only eat pure, organic feed and no nasty animal by-products like egg shells and ground bones.
Source: Foundation Education
- The size of the flock (number of hens)
- maximum flock size of 16,000, as advised by the RSPCA (UK’s ) vs. 3,000 flock size by organic standards
- The amount of space, and type of environment animals have
- allocation of 4 metres square of outdoors space per bird, with the forage rested for 2 months, according to EU regulation between flocks vs. 9 metres square and 9 month forage rest for organic flocks
- The way they are treated
- Beak trimming allowed by EU law to prevent feather pecking injuries / zero tolerance beak trimming with the Soil Association’s organic principles
- What they are fed
- GM-feed accepted under the description of free-range vs. strict, GM free diet under organic standards
- Use of antibiotics
- Antibiotics accepted for free range birds vs. no antibiotics with organically reared poultry
Source: Soil Association
Simply speaking, there are 2 modes of operation for a free range poultry farm:
1. Access to outdoors via a run from a coop
Source: Poultry Houses: 197 Designs, Structures, Plans & Systems (PDF Guide)
2. Access to an open field, or pasture
Source: How To Start A Poultry Farm Business In The Philippines (2021)
*Plus, Flock Mobility
One model variation which can be applied to both models above, and adds a twist on the theme is mobility.
Why mobility?
The land becomes nutritionally diminished as a consequence of continual feeding.
Birds need their foraging grounds to recover and become replenished.
To assist in resting the land, some farmers move the flocks and rotate plots (otherwise known as Pastured Poultry).
And there are multiple ways of moving a flock.
Here are a few options:
Wagon train coops
Source: Farm Show
Coop on a cart
Source: Backyard Chickens
A-Frame mobile coop
Source: Justin Rhodes
The principle remains the same, although the exact vehicle type may differ.
Regenerative poultry models
As an alternative to the mobile free range poultry units is regenerative poultry.
Source: Aftaweb
The land’s nutrient depletion is unavoidable if you range poultry. And as demonstrated above, one way around the obstacle is to move (re-site) your flock around your land, continually.
The downside here though is the labour intensity.
Is there a ‘lower labour impact’ method?
The answer for some is regenerative poultry farming.
The theory here is:
If you maximise the earth’s regenerative (recovery) potential to replenish the nutritional load by producing a synergistic agri-ecosystem…
…then, you get the same results as the ‘mobile method’ – only with less moving around.
By rotational grazing in alternative paddocks you can strike an optimal balance of use that sustains a profitable enterprise.
Source: The Poultry Site
Meet Emerson Siscar.
Emerson is an IT consultant by trade, who turned free range chicken farmer in 2011.
11 years on – he’s succeeded at sustaining a profitable, local breed free range poultry business in the Philippines.
In an interview with The Poultry Site, Emerson reveals his rationale for choosing free range rearing:
“I wanted to pursue organic free-range poultry farming because just a few groups were dabbling in it at the time. It was definitely a ‘blue ocean’. I also dove in with a large number of chickens to make failure too expensive. I still did fail a few times – and that’s how I learned the lessons which are keeping us afloat today.”
Source: The Poultry Site
Emerson has adopted a hybrid farming model that again leans upon the leveraged benefits of complimentary elements in an ecosystem.
Source: The Poultry Site
Here’s how his farm is set up:
“[He] manages a two-hectare organic poultry farm in the hills of Santa Teresita, Batangas – a sparsely vegetated area dominated by vegetable growers. His farm is roughly divided into a dozen organic chicken and egg production plots. Eight are fenced-off areas with coops, baskets and egg cabinets for layers, while four are spacious lots with coops for broilers. The rest of the land is used to grow herbs and vegetables like corn, eggplant, bitter gourd, lemon grass, banana, papaya and azolla, a floating aquatic plant with 30 percent protein content used to augment chicken feed.”
Source: The Poultry Site
Emerson’s birds are what are classed as ‘slow-grow’ meat birds.
The key ‘slow-grow’ characteristics look like this:
Source: WATTAgNet
And performance wise…
…here’s a quick comparison graphic of the key differences between ‘slow-grow’ free range/organic birds vs. indoor reared commercial breeds, like Cobb 500, for example:
Source: The British Poultry Council
In short, ‘slow-grow’ differ in that they…
(And more so, if you aim for organic status further stipulations must be met on feed standards raising the direct input costs.)
But on the flip-side, the premium pricing paid for ‘slow-grow’ free range and organic poultry – at least in Emerson’s native Philippines – is buoyant. This makes the model sustainable, although more patient and labour intensive.
Here’s a brief cost-benefit consideration of raising ‘slow-grow’ organic birds:
“Organic free-range chicken meat is a premium item, but production must always comply with strict standards,” explains Emer. “Feeds can’t contain animal protein so we make a special mixture of corn, soy and vegetable pellets. We don’t use antibiotics or growth hormones, so our brown broilers take a longer time to reach a live weight of 1.5kg to 2kg – about 75 days compared to the 28-day-old chickens produced by factory farms. Still, our chickens retail for much more – up to 400 pesos or US$8 per kilogram compared with around 120 pesos or $2.5 for non-organic chicken, so the extra time, effort and love we give them pays dividends.”
Source: The Poultry Site
One reality of the premium free-range production model though is B-class birds.
Not all birds make higher the standard.
And so, to save losing out on potential gain (from substandard stock) – producers like Emerson need to get witty:
Not all birds make the cut, however, which is why Emer developed creative ways to sell rejected but still high-quality dressed chicken. “I sold quite a few batches of B-quality chickens at a loss before I realised they were perfectly acceptable for lower-tier markets. Today we offer these quality dressed chickens to supermarkets. I’m even coming up with my own barbequed chicken line. To succeed in the poultry business, you have to maximise involvement in each step of the supply chain.
“The last thing we want is to waste resources and opportunities.”
Source: The Poultry Site
And why stop there?
Now that Emerson has seen the commercial advantage in thinking quickly on his feet, he’s leveraging all sorts of advantages by thinking outside of the box:
“We’ll now dabble with native black Ulikba chickens, popular in Chinese restaurants. We’re developing our own feeds. Plus the barbecue line. Since that workshop with Mr Kiyosaki, I’ve found that the best way to really thrive is to innovate. By doing so, we’ll always sail smooth in a blue ocean.”
Source: The Poultry Site
On that note, let’s now examine the steps for starting your own free range poultry farm.
To start a free range poultry farm of any type successfully, you’ll need to follow these principle steps:
Reverse engineer your free range poultry farm earnings.
Decide what proportion of your personal outgoings that you want the farm to contribute.
For example, if your expected salary from running the farm is ₱187,400, then this sets your farms minimum EBITA (earnings before interest, tax and amortisation) at ₱187,400 – plus deductions.
Source: Salary Expert
Now, build a model to support your aim.
Discover your national, regional and local free range poultry market.
Find reports and studies either from governmental sources, news networks, organisations or commercial entities.
For example:
“The production of agricultural crops has been rising at a rate of 1.5–2 per cent per annum, whereas eggs and broilers have been shown to rise at a rate of 8-10 per cent per annum but the growth has been mainly restricted to commercial poultry.”
Source: Krishijagran
Then, analyse the detail for trends and insights that might help guide you in a prudent industry outlook.
Contact your local agricultural extension lead with government and ask them for your local free range poultry demo farm.
Book a site visit – prepare questions and take notes.
Egg farming vs. chicken meat farming although are both classed as poultry – are very different modes of rearing operation.
Compare the production profiles of both egg and meat production alongside the resulting cash flow schedules.
Get the Poultry Project Reporter 2.0 ebook today
It’s worth planning in advance and preparing yourself for when you should expect to see your revenue flow in.
Using your expected earnings and bearing in mind your chosen product type (eggs, meat or both) – simply take the base unit, either a carcass or egg and multiply the output to meet your expected earnings.
For example, this guide will help you produce an accurate egg estimate:
Chicken egg production calculation
Every livestock farmer knows you don’t just grow a flock or herd, you build a model.
The model is engineering. A technical gearing that picks up the strain of production and delivers predictable results with failsafe and contingency built in.
Here’s an example, with broiler farming an entire flock is sold at market date.
If this was your only flock – you’d suffer cash flow outage whilst waiting for another.
6 weeks at commercial best, or 12 weeks perhaps for slow-grow.
Among chicken meat farmers there are therefore some popular tried a tested production models to smooth out your production diary and cash flow.
Take a look at these two example broiler models.
As some questions of your concept so far with a feasibility plan.
Test feasibility by kicking the wheels of your plan thus far and seeing if your idea will stand up in principle to the buffeting of the external economy.
Also, such a study will prove your internal financial planning too.
Take a look at this proposal for free range poultry production.
At this stage you’ll be quite comfortable with how your poultry farm model will succeed and make money.
But how confident can you really be without real buyer interest?
Build a project report that generates an accurate financial projection of your planned farming business.
A project report gives you:
Not only that, but your project report will generate accurate production estimates for your chosen multi-flock rearing model.
Use Poultry Project Reporter 2.0 software to write your poultry project report – in minutes.
The software is PDF fillable meaning all you need to do is feed it with the raw data…
…and it will do the rest (calculations, formatting and fill in the gaps).
Contact your local agri-extension or planning office.
They will be working towards achieving certain strategic goals within your area.
Win their support:
Interview your local officer and receiving all relevant documentation on what goals they are trying to hit.
Simply align your free range poultry farm to dovetail with their purposes.
Access the necessary covenants, paperwork and learning material concerning starting up a business in your country, region or district.
You should find these resources on your Government’s website.
Take Uganda, for example:
This web page is the official guide for starting a business in Uganda.
Source: Uganda National Web Portal
As a producer, there are incomparable benefits from getting your product to market (face-to-face) with buyers directly.
Most of all, with the right direct marketing (DM) approach you can master building a pipeline of demand.
Use a proven B2B (business to business) direct sales and marketing strategy as a blueprint to attract ready buyers for your free range product.
Such buyers might include:
Download the Direct Marketing Masterclass for a next level tutorial in how to win new buyer contracts.
Poultry farmers that keep diligent records see round corners.
A very advantageous skill to have.
Learning on the job should never stop in poultry and journalling your observations is the foundation to excelling your understanding.
Use a blog for keeping a daily record of your observations. I recommend using WordPress and Genesis Theme for this.
Plus, use an online template like Broiler Production Record Template to stay up on your daily flock audit.
Staying abreast of your numbers keeps you financially astute.
Use tried and tested templates to keep your figures in check. Plus, use KPI dashboarding to stay on top of vital statistics.
I recommend using an automated framework that is customised for a meat or egg farm.
Subscribe to my course Poultry Farming Records, Bookkeeping and Accounting.
If you come in to this without your own land, you’ll need to use a land broker.
But before you get serious about acquisition – first get a solid understanding of the type of land that would best suit your free range poultry farm.
Search online for free range poultry farms and take notes of the land features that they share.
Read this quick checklist from Virbac that outlines the main pointers to consider.
This is probably more inline with the regenerative methods.
But regardless, the use of land is critical to maintaining production standards on your free range poultry farm.
Read this PDF from the Woodland Trust on tree planting best practice for free range chicken farms.
This depends on what type of housing you will adopt.
Coop, mobile coops, automated etc.
I recommend you examine closely the pros and cons as well as the design features, flaws and plans for feasibility.
Read my guide on Poultry Houses: 197 Designs, Structures, Plans & Systems (PDF Guide) – it is comprehensive.
Feeders, drinkers, vehicles etc. all of this kit will be necessary for keeping your farm operational.
Not only will you need to know what to use, but how to use it.
I recommend this Free Range Chicken Production Manual by Reginaldo Haslett-Marroquin for a detailed breakdown of exactly what you should be looking at using and why.
Feed, chicks, equipment etc.
Getting advantageous commercial arrangements with suppliers that minimise your costs and deliver consistent quality is key to sustainable profits.
Study this guide on Farmers’ Supply Chain Best Practices by AgEcon – it gives you techniques and strategies for maximising your bargaining power to lower cost.
There are so many methods and variations of model to choose from when setting up a free range poultry farm.
I have outlined a number of options within this guide to help you find your feet.
Plus, you’ve got above a simple step-by-step process for getting started.
If you still are looking for a competent trainer or advisor to assist you in a hands-on fashion along your journey, then I recommend subscribing to Advanced Poultry Pickup my comprehensive training program.
Now over to you…
Are you currently thinking about starting a free range poultry farm from scratch?
Do you have experience with indoor rearing only and are considering changing codes of practice?
Either way, I’d be interested to hear from you.
Today, I’m going to explain how the most common multi-flock layer farming models work.
And I’ll compare the features of each model…
…highlighting their importance for your layer farming business plans.
The aim?
The help you understand the benefits of each.
And make the most profitable decision for your business planning.
When rearing layers (and broilers alike) you have two main choices of rearing model.
[I cover this briefly, in this chapter “Projecting Layer Egg Production” of my free poultry farming eBook]
Single flock or multi-flock.
In other words,
a) Rearing one flock at a time on your farm…
…or,
b) rearing more than one flock on your farm, simultaneously.
But why choose one over the other?
Here are the pros and cons of single flock layer farming vs. multi-flock models:
Multi-flock layer farming is common practice around the world.
The idea of raising more than one egg-laying flock at one time has its advantages (shown above).
But what are the popular models & how do they ACTUALLY work?
Here is a detailed breakdown:
Definition:
How it works:
Definition:
How it works:
Definition:
How it works:
As you can probably imagine, the more houses you have – the more eggs your farm will produce.
So, these multi-flock models offer ways of increasing your output.
And they do this whilst keeping your overall layer hen headcount (capacity) the same.
It’s like adding gears to your bicycle.
Makes for a much smoother and easier ride, for the same effort.
Not bad, huh?
Whilst this IS a good introduction to the theory of multi-flock layer farming,
What it doesn’t give you is a factual example of the kind of figures you should expect from these types of strategies.
It lacks some sample numbers to help you build your own plan.
Want to see a sample plan using these models above?
I’ve got just the thing for you.
It is the egg by egg, pound by pound sample plan for what kind of output and gross profit these models can give you.
Subscribe now to access The Insider’s Guide for sample multi-flock models to download.
This is a comprehensive guide to broiler brooding best management practices for poultry farmers.
So, if you want to learn all about brooder management – including: [Read more…] about Broiler Brooding Best Management Practices
This is a list of poultry farms in the Philippines and their poultry house designs – complete with interior and exterior photos.
I’ve taken a selection of poultry house designs from a variety of farms in the Philippines, showcasing their unique:
…and on different types of land, locations just for your interest.
Why?
My hope is they will help you make successful decisions on how to house the flocks on your own farm.
These are only examples and not an exhaustive list by any means.
Rather think of this as a photo scrapbook of example poultry house designs from across the Philippines – from REAL FARMS.
I tried to make them as varied as possible so to help small scale to large commercial start-ups.
(Hope this helps you start up your poultry farm in the Philippines.)
Are you planning to develop and construct your own poultry house design in the Philippines?
Are you extending your poultry farm capacity and are looking for a few ideas or house plans?
Either way, I’d be interested to hear from you.
Leave me a comment below.
This is an example commercial poultry farm proposal for expanding organic, free range egg production.
(It’s downloadable as a PDF, just press the button above.)
On this page, you’ll find a custom poultry farm proposal including:
Quick note: Although this poultry farming proposal was set in South Africa, the general principles and reading value will hold up whether you are from Ethiopia or Kenya, for example…
…Or, anywhere else for that matter. (It’s all universal stuff.)
So without further ado, let’s see the proposal!
Yippe Yolk Farm Inc. is a successful small scale egg organic laying farm in Gauteng, South Africa.
Started in 2019, the farm began with just 3,000 layer bird capacity.
And since then (some 72 weeks later) the farm has doubled its laying capacity (6,000 layers).
This was fueled by strong consumer demand for the product.
The USP of brighter, more vibrant yolks has been especially successful with restaurant chefs and food manufacturers.
Now, the executive team are confident that given the market feedback, that there is a solid case for expanding the laying capacity to 20,000 layers.
Having landed some high-profile PR coverage with notable recommendations from leading South African chefs,
Plus, rising consumer sales in the growing network of highstreet retail venues,
It is very apparent that an expansion in capacity is earnestly warranted.
This proposal is a summarised pitch for funded and financial support required to raise the necessary growth capital.
All facts figures and findings herein are researched and provide a basis for this investment proposal.
“The poultry and egg industry is the largest sub-sector of the South African agricultural sector.
The poultry industry represented 16.6% or R47.9bn of the total gross value of 2018 agricultural production of R288.6bn and is the largest animal production segment.”
(Source: Business Wire)
“The South African organic industry has an estimated annual value of between R70 million to R80 million with fresh produce making up the majority (70 percent) of organic food sales (De Vynck, 2005).
This represents 0.3 percent of the 29 total food market (Irwin, 2002).
This is low in comparison with the markets in Northern America, Europe and Latin America (See Table 2.1).
It is difficult to determine the local retail demand for organic food as there is no readily available time series data on retail sales.
The leading research firm, AC Nielsen does not collate data separately for organic food products.
Currently, demand is more than the supply particularly for organic milk and chicken (Mead, 2005).”
(Source: University of Pretoria)
The statistical trend of increasing demand for organic produce in South Africa supports the 1st hand customer feedback of the company.
“In their haste to catch up, the South African chefs hardly know which way to turn. One-half of the Cape is trying to follow America, Mr. Stroebel said. The other half is trying to use the fusion of the Indian and Malay that is already here.”
“The South African national dish, bobotie, captures its essence. It was said to have been brought to Europe by the Crusaders and to Africa by both the Dutch and the Malays. In South Africa, it has become a meat pie of coarsely ground lamb with plenty of curry, bay or lemon leaves and fruits, covered with a custard of milk and eggs, as homey and much loved as meatloaf is in the United States.”
(Source: New York Times)
There’s some serious growth potential for supplying organic produce in South Africa.
Especially to high-end hospitality & event catering clients.
And it seems South African chefs are only just catching on to some of the more forward-thinking global gastro-movements.
The future is more fusion and richer blends, with a focus on vibrant colours and creamier textures.
Eggs are often a common ingredient feature, especially for the toppings like in Bobotie.
The long and short of it is there plenty more upside potential in the South African organic foods market.
(SWOT)
“Garth Stroebel, the executive chef at the Mount Nelson Hotel in Cape Town, said that until recently the best ingredients were sent out of the country.
Five years ago, we had to take what was given to us — now, we are finding growers and buying from them directly.”
(Source: New York Times)
Strengths
We have strong press coverage and already some leading names in the culinary professional circles under our belt.
We are here to serve our country’s best cooking talent.
We refuse to export our produce. We are committed to exclusively serving our own market.
And our clientele knows it. We’re really trusted domestically and that’s largely (interestingly enough) an organic thing.
Our sales are growing as our professional users expand their repertoires.
The company recently expanded capacity by 100% and the decision was proven right by our sales success.
Our share of the organic egg market has directly snowballed.
Weaknesses
Whilst we’ve benefited from increased cash flow, our capital reserves were spent on our recent expansion.
This time around we seek external capital financing to acquire land, build sheds and hold operating stock.
Opportunities
The opportunity to grow matches the market expectation – as leaders in the organic egg market, our growing userbase of professional chefs & institutions are becoming dependant.
Our desire is to walk with them, step by step – responding to their needs and entrenching our specialist supply role.
We have the conversation and don’t want to disappoint.
Threats
We can see that the profile of organic food consumption in South Africa is relatively emerging, compared with other advanced economies.
Currently, domestic producers are quite a bit behind in matching demand.
But it won’t remain that way for long.
New entrants are a constant potential. We want to capitalise on our advantage and firmly establish a strategic lead in the marketplace.
Maintaining our healthy margins is key to the success of this growth strategy.
Sustainability is a cornerstone of the business.
Whilst we are seeking financing for this venture, it’s only because we estimate that we could miss the window and be overtaken if we try to internally fund this.
We have obtained a kind of 1st mover advantage which sets us apart from our peers.
If we self-fund this move, we might concede an advantage to another runner in this market.
Speed therefore also is a key ingredient.
An adverse global event like a pandemic would knock our ability to convert this goal.
Also, currently, the regulatory controls surrounding organic produce in South Africa are quite relaxed.
If that were to change, we may have some additional operational and administrative criteria to meet.
The current demand for orders of 100,000 eggs per week exceeds our current capacity by some 70,000 eggs.
The only way we can reach this goal is to expand the farm output by 250%.
With the current constraints, the only way to achieve this is to acquire more land and build.
We would need a suitable plot of land in the region of about 150,000 – 250,000 sq.ft.
A plot like this, however: https://www.gumtree.co.za/a-land-plots-for-sale/other/calling-all-developers-business-opportunists-and-small-scale-farmers/1008838104590912583360409
Would give the project even further breathing space up to 200,000 egg per week, for R3.3m.
It’s water-rich, has plenty of organic pasture and plenty of space and room for growth.
Time is ticking. We have already just bought a batch of 6,000 layers to replace a culled batch.
Therefore we have 72 weeks of production to go before our next flock replenishment.
We aim to tie in the timeframes of both the next flock replenishment and our expanded capacity launch date.
Naturally, there will be a delay of 18-20 weeks before we start seeing egg production on the new site.
But we want to see a mirror image production profile across sites.
So, effectively we’ve got 72 weeks to:
…the new production site.
Our target capacity will be 10,000 layers.
The company currently charges R1.88 per egg to buyers.
If prices hold, the executive team foresees a highly profitable extension of what is a very sustainable farm business.
However, there is some in-built resilience. Currently, the estimations of margin contribution per hen over the 72 week rearing period is R.329.19.
There is enough profitable headroom here that should feed costs rise, the business should still have buoyancy in profits to continue fulfilling debt repayment and further growth goals.
Demand is exclusively high in this niche.
There just isn’t the supply to meet it yet. And we’re far away from getting anywhere close.
It is very much supported by trend which is in our favour but also more substantially by the desire and willingness of buyers to ‘buy local’.
We are very much ahead of the curve here and should maintain the advantage on the rest of the field.
We already have open channels of communication and transaction with buyers. And again, their demand is yet unfulfilled.
Our PR has already started a snowball effect of awareness among our target audience. User feedback of our service and products is glowing.
We are becoming firmly established in and almost synonymous with quality organic eggs in this niche.
A strong position by any estimation.
Our operations are quite lean.
On the ground, we would require more staff on the new site to fulfill keeping the flocks and managing the grounds.
But we have good training in-house and are confident of finding the talent at an affordable rate.
The centralised admin will handle all other management functions.
This is how our numbers on this new venture stack up:
[*All exceprts, tables and snippets below are produced using Poultry Project Reporter software.]
Necessary capital expenses and operational or working capital:
| One-Off Capital | |
| Land | |
| 3,300,000 | |
| Poultry House Construction | |
| 100,000 | |
| Civil Building Construction | |
| 80,000 | |
| Other Construction | |
| 4,000 | |
| Feeders | |
| 40,000 | |
| Drinkers | |
| 30,000 | |
| Cages | |
| 0 | |
| Vehicles | |
| 500,000 | |
| Equipment | |
| 75,000 | |
| Utilities Installation | |
| 0 | |
| TOTAL: One-off Capital Cost | |
| 4,129,000 | |
| Working Capital | |
| Chicks | |
| 147,788.8 | |
| Feed | |
| 2,579,677.6 | |
| Labour | |
| 70,000 | |
| Transport | |
| 30,000 | |
| Livestock Insurance | |
| 6,000 | |
| Vet Fees | |
| 8,500 | |
| TOTAL: Expenses | |
| 2,841,966.4 | |
| Overheads | |
| Mortgage | |
| 200,000 | |
| Electricity | |
| 5,000 | |
| Gas | |
| 1,500 | |
| Building Insurance | |
| 5,000 | |
| Maintenance & Repairs | |
| 10,000 | |
| Administrative Labour | |
| 25,000 | |
| Municipality Tariffs | |
| 5,000 | |
| Accounting & Bookkeeping | |
| 15,000 | |
| Marketing | |
| 25,000 | |
| Office Supplies | |
| 1,000 | |
| Contingency | |
| 5,000 | |
| TOTAL: Overhead Cost | |
| 297,500 | |
| TOTAL: Working Capital Cost | |
| 3,139,466.4 | |
| Funding | |
| Total Project Cost | |
| 7,268,466.4 | |
| Bank Loan | |
| 7,268,466.4 | |
A summary of how much land and house floor space is needed:
| Batch Metrics | |
| Batch Size of Layer Birds | |
| 10,000 | |
| Expected Bird Mortality Rate | |
| 0.4 | |
| Expected Bird Mortality Per Batch | |
| 40 | |
| Total Capacity Size of Layer Farm | |
| 30,120 | |
| Layer Housing System | |
| Brooder Housing System | |
| Deep Litter | |
| Layer Housing System | |
| Deep Litter | |
| Bird House Floor Space | |
| Your Total Recommended Brooder Floor Space (Sq. Ft.) | |
| 5,020 | |
| Your Total Recommended Layer Floor Space (Sq. Ft.) | |
| 60,240 | |
| Your Total Recommended Bird House Floor Space (Sq. Ft.) | |
| 65,260 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Author | |
| Bernard Nkosi | |
| Proposed Business Name | |
| Yellow Yolk Farm Inc. | |
| Page Title | |
| Layer Farm Houses & Grounds | |
Extimated feed cost of rearing the new flock:
| Rearing System & Frequency of Layer Egg Sales | |
| 1+2 | |
| Batch Size of Layer Birds | |
| 10,000 | |
| Expected Bird Mortality Per Batch | |
| 40 | |
| Feed Price | |
| Feed Cost per KG | |
| 5.8 | |
| Flock Feed Consumption | |
| TOTAL: Feed Consumed by Flock (Year 1) | |
| 444,772 | |
| TOTAL: Feed Consumed by Flock (Year 2) | |
| 921,270.4 | |
| TOTAL: Feed Consumed by Flock (Year 3) | |
| 931,712 | |
| TOTAL: Feed Consumed by Flock (Year 4) | |
| 900,387.2 | |
| TOTAL: Feed Consumed by Flock (Year 5) | |
| 894,764.8 | |
| TOTAL: Feed Consumed by Flock (Year 6) | |
| 907,616 | |
| Flock Feed Cost | |
| TOTAL: Flock Feed Cost (Year 1) | |
| 2,579,677.6 | |
| TOTAL: Flock Feed Cost (Year 2) | |
| 5,343,368.32 | |
| TOTAL: Flock Feed Cost (Year 3) | |
| 5,403,929.6 | |
| TOTAL: Flock Feed Cost (Year 4) | |
| 5,222,245.76 | |
| TOTAL: Flock Feed Cost (Year 5) | |
| 5,189,635.84 | |
| TOTAL: Flock Feed Cost (Year 6) | |
| 5,264,172.8 | |
The cost of laying down sawdust litter on the floor of the layer houses:
| Rearing System & Frequency of Layer Egg Sales | |
| 1+2 | |
| Flock Relocations | |
| Brooder Housing System | |
| Deep Litter | |
| Layer Housing System | |
| Deep Litter | |
| Type of Brooder Deep Litter | |
| Litter Material | |
| Sawdust | |
| Density (g/cm3) | |
| 0.21 | |
| Brooder Floor Space Coverage | |
| Your Total Recommended Brooder Floor Space (Sq. Ft.) | |
| 5,020 | |
| Floor Space (cm2) | |
| 4,663,730.6 | |
| Deep Litter Price | |
| Price of Material per Ton | |
| 800 | |
| Depth of Deep Litter Material for Brooder House | |
| Depth of Litter (inches) | |
| 4 | |
| Depth of Litter (cm) | |
| 10.16 | |
| Volume of Deep Litter Material to Cover Brooder House Floor | |
| Volume of Litter Required for Floor Coverage (cm3) | |
| 47,383,502.9 | |
| Weight of Brooder House Deep Litter Material | |
| Weight of Litter Required for Floor Coverage (g) | |
| 9,950,535.61 | |
| Weight of Litter Required for Floor Coverage (tons) | |
| 9.79 | |
| Cost of Brooder House Deep Litter Material | |
| Cost of Litter Required for Floor Coverage | |
| 7,832 | |
| Brooder Litter Changes | |
| Litter Changes (Year 1) | |
| 1 | |
| Litter Changes (Year 2) | |
| 2 | |
| Litter Changes (Year 3) | |
| 2 | |
| Litter Changes (Year 4) | |
| 2 | |
| Litter Changes (Year 5) | |
| 2 | |
| Litter Changes (Year 6) | |
| 2 | |
| Type of Layer Deep Litter | |
| Litter Material | |
| Sawdust | |
| Density (g/cm3) | |
| 0.21 | |
| Layer Floor Space Coverage | |
| Your Total Recommended Layer Floor Space (Sq. Ft.) | |
| 60,240 | |
| Floor Space (cm2) | |
| 55,964,767.2 | |
| Deep Litter Price | |
| Price of Material per Ton | |
| 800 | |
| Depth of Deep Litter Material for Layer Houses | |
| Depth of Litter (inches) | |
| 4 | |
| Depth of Litter (cm) | |
| 10.16 | |
| Volume of Deep Litter Material to Cover Floor of Layer Houses | |
| Volume of Litter Required for Floor Coverage (cm3) | |
| 568,602,034.75 | |
| Weight of Layer House Deep Litter Material | |
| Weight of Litter Required for Floor Coverage (g) | |
| 119,406,427.3 | |
| Weight of Litter Required for Floor Coverage (tons) | |
| 117.52 | |
| Cost of Deep Litter Material | |
| Cost of Litter Required for Floor Coverage | |
| 94,016 | |
| Layer Litter Changes | |
| Frequency | |
| 6 Months | |
| Litter Changes (Year 1) | |
| 3 | |
| Litter Changes (Year 2) | |
| 4 | |
| Litter Changes (Year 3) | |
| 4 | |
| Litter Changes (Year 4) | |
| 4 | |
| Litter Changes (Year 5) | |
| 4 | |
| Litter Changes (Year 6) | |
| 4 | |
| Annual Deep Litter Cost | |
| TOTAL: Cost of Litter Required (Year 1) | |
| 289,880 | |
| TOTAL: Cost of Litter Required (Year 2) | |
| 391,728 | |
| TOTAL: Cost of Litter Required (Year 3) | |
| 391,728 | |
| TOTAL: Cost of Litter Required (Year 4) | |
| 391,728 | |
| TOTAL: Cost of Litter Required (Year 5) | |
| 391,728 | |
| TOTAL: Cost of Litter Required (Year 6) | |
| 391,728 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Author | |
| Bernard Nkosi | |
| Proposed Business Name | |
| Yellow Yolk Farm Inc. | |
| Page Title | |
| Layer Farm Deep Litter | |
The direct cost of running the layer farm:
| Rearing System & Frequency of Layer Egg Sales | |
| 1+2 | |
| Batch Size of Broiler Birds | |
| 10,000 | |
| Expected Bird Mortality Per Batch | |
| 40 | |
| Deep Litter Cost | |
| Deep Litter Cost (Year 1) | |
| 289,880 | |
| Deep Litter Cost (Year 2) | |
| 391,728 | |
| Deep Litter Cost (Year 3) | |
| 391,728 | |
| Deep Litter Cost (Year 4) | |
| 391,728 | |
| Deep Litter Cost (Year 5) | |
| 391,728 | |
| Deep Litter Cost (Year 6) | |
| 391,728 | |
| Bird House Cleaning Cost | |
| Bird House Cleaning Cost (Year 1) | |
| 4,720 | |
| Bird House Cleaning Cost (Year 2) | |
| 9,440 | |
| Bird House Cleaning Cost (Year 3) | |
| 9,440 | |
| Bird House Cleaning Cost (Year 4) | |
| 9,440 | |
| Bird House Cleaning Cost (Year 5) | |
| 9,440 | |
| Bird House Cleaning Cost (Year 6) | |
| 9,440 | |
| Vet Cost | |
| Vet Fees (Year 1) | |
| 6,024 | |
| Vet Fees (Year 2) | |
| 6,024 | |
| Vet Fees (Year 3) | |
| 6,024 | |
| Vet Fees (Year 4) | |
| 6,024 | |
| Vet Fees (Year 5) | |
| 6,024 | |
| Vet Fees (Year 6) | |
| 6,024 | |
| Livestock Cost | |
| Livestock Insurance Cost (Year 1) | |
| 6,024 | |
| Livestock Insurance Cost (Year 2) | |
| 6,024 | |
| Livestock Insurance Cost (Year 3) | |
| 6,024 | |
| Livestock Insurance Cost (Year 4) | |
| 6,024 | |
| Livestock Insurance Cost (Year 5) | |
| 6,024 | |
| Livestock Insurance Cost (Year 6) | |
| 6,024 | |
| Fuel Cost | |
| Fuel Cost (Year 1) | |
| 3,982.08 | |
| Fuel Cost (Year 2) | |
| 9,955.2 | |
| Fuel Cost (Year 3) | |
| 10,248.96 | |
| Fuel Cost (Year 4) | |
| 10,069.44 | |
| Fuel Cost (Year 5) | |
| 9,873.6 | |
| Fuel Cost (Year 6) | |
| 9,955.2 | |
| Labour Cost | |
| Husbandry Labour Cost (Year 1) | |
| 68,640 | |
| Husbandry Labour Cost (Year 2) | |
| 68,640 | |
| Husbandry Labour Cost (Year 3) | |
| 68,640 | |
| Husbandry Labour Cost (Year 4) | |
| 68,640 | |
| Husbandry Labour Cost (Year 5) | |
| 68,640 | |
| Husbandry Labour Cost (Year 6) | |
| 68,640 | |
| Flock Feed Cost | |
| TOTAL: Flock Feed Cost (Year 1) | |
| 2,579,677.6 | |
| TOTAL: Flock Feed Cost (Year 2) | |
| 5,343,368.32 | |
| TOTAL: Flock Feed Cost (Year 3) | |
| 5,403,929.6 | |
| TOTAL: Flock Feed Cost (Year 4) | |
| 5,222,245.76 | |
| TOTAL: Flock Feed Cost (Year 5) | |
| 5,189,635.84 | |
| TOTAL: Flock Feed Cost (Year 6) | |
| 5,264,172.8 | |
| Layer Chicks Bought | |
| TOTAL: Layer Chick Cost (Year 1) | |
| 147,788.8 | |
| TOTAL: Layer Chick Cost (Year 2) | |
| 147,788.8 | |
| TOTAL: Layer Chick Cost (Year 3) | |
| 147,788.8 | |
| TOTAL: Layer Chick Cost (Year 4) | |
| 147,788.8 | |
| TOTAL: Layer Chick Cost (Year 5) | |
| 147,788.8 | |
| TOTAL: Layer Chick Cost (Year 6) | |
| 147,788.8 | |
| Total Expenses | |
| Total Expenses (Year 1) | |
| 3,106,736.48 | |
| Total Expenses (Year 2) | |
| 5,982,968.32 | |
| Total Expenses (Year 3) | |
| 6,043,823.36 | |
| Total Expenses (Year 4) | |
| 5,861,960 | |
| Total Expenses (Year 5) | |
| 5,829,154.24 | |
| Total Expenses (Year 6) | |
| 5,903,772.8 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Page Title | |
| Layer Farm Direct Costs | |
Key facts and figures for growing this business:
| Feed Conversion | |
| TOTAL: Rearing Feed in KG | |
| 48.94 | |
| Average Weight of Egg (g) | |
| 55 | |
| Eggs Produced By 1 Bird in 72 From Birth | |
| 330 | |
| FCR (Feed Conversion Ratio) | |
| 2.6964187327824 | |
| Cost Analysis | |
| Cost per KG of Feed | |
| 5.8 | |
| Cost of Layer Chick | |
| 7.36 | |
| TOTAL: Input Cost To Rear 1 Layer to 72 Weeks | |
| 291.21 | |
| Revenue & Margin | |
| Price per Egg | |
| 1.88 | |
| Average Sales Revenue per Bird in 72 Weeks | |
| 620.4 | |
| Layer Hen Profit Contribution | |
| 329.19 | |
| Manure Yield | |
| Manure to Feed Conversion Rate | |
| 0.7628458 | |
| Manure per Bird per Rearing Cycle (KG) | |
| 37.33 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Author | |
| Bernard Nkosi | |
| Proposed Business Name | |
| Yellow Yolk Farm Inc. | |
| Page Title | |
| Layer Farm ROI Metrics | |
Money made from selling eggs, spent hens, manure and gunny bags:
| Egg Production | |
| Year 1 – Egg Sales Income | |
| 4,605,548.8 | |
| Year 2 – Egg Sales Income | |
| 11,513,872 | |
| Year 3 – Egg Sales Income | |
| 11,853,625.6 | |
| Year 4 – Egg Sales Income | |
| 11,645,998.4 | |
| Year 5 – Egg Sales Income | |
| 11,419,496 | |
| Year 6 – Egg Sales Income | |
| 11,513,872 | |
| Manure Production | |
| Year 1 – Manure Sales Income | |
| 508,938.68 | |
| Year 2 – Manure Sales Income | |
| 1,054,180.89 | |
| Year 3 – Manure Sales Income | |
| 1,066,128.89 | |
| Year 4 – Manure Sales Income | |
| 1,030,284.89 | |
| Year 5 – Manure Sales Income | |
| 1,023,851.36 | |
| Year 6 – Manure Sales Income | |
| 1,038,556.58 | |
| Spent Hens | |
| Year 1 – Spent Hen Sales Income | |
| 0 | |
| Year 2 – Spent Hen Sales Income | |
| 567,059.2 | |
| Year 3 – Spent Hen Sales Income | |
| 567,059.2 | |
| Year 4 – Spent Hen Sales Income | |
| 283,529.6 | |
| Year 5 – Spent Hen Sales Income | |
| 567,059.2 | |
| Year 6 – Spent Hen Sales Income | |
| 567,059.2 | |
| Re-Sale Gunny Bags | |
| Year 1 – Gunny Bag Resale Income | |
| 259,455 | |
| Year 2 – Gunny Bag Resale Income | |
| 537,425 | |
| Year 3 – Gunny Bag Resale Income | |
| 543,515 | |
| Year 4 – Gunny Bag Resale Income | |
| 525,210 | |
| Year 5 – Gunny Bag Resale Income | |
| 521,955 | |
| Year 6 – Gunny Bag Resale Income | |
| 529,445 | |
| Project Income | |
| TOTAL: Year 1 – Income | |
| 5,373,942.48 | |
| TOTAL: Year 2 – Income | |
| 13,672,537.09 | |
| TOTAL: Year 3 – Income | |
| 14,030,328.69 | |
| TOTAL: Year 4 – Income | |
| 13,485,022.89 | |
| TOTAL: Year 5 – Income | |
| 13,532,361.56 | |
| TOTAL: Year 6 – Income | |
| 13,648,932.78 | |
| Gross Project Benefit | |
| TOTAL: Gross Benefit | |
| 73,743,125.49 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Author | |
| Bernard Nkosi | |
| Proposed Business Name | |
| Yellow Yolk Farm Inc. | |
| Page Title | |
| Layer Farm Sales Revenue | |
Breakdown of gunny bag sales:
| Rearing System & Frequency of Layer Egg Sales | |
| 1+2 | |
| Batch Size of Layer Birds | |
| 10,000 | |
| Expected Bird Mortality Per Batch | |
| 40 | |
| Gunny Bag Price Metrics | |
| Size of Gunny Bag | |
| 60 KGS | |
| Resale Price per Gunny Bag | |
| 35 | |
| Flock Feed Consumption | |
| TOTAL: Feed Consumed by Flock (Year 1) | |
| 444,772 | |
| TOTAL: Feed Consumed by Flock (Year 2) | |
| 921,270.4 | |
| TOTAL: Feed Consumed by Flock (Year 3) | |
| 931,712 | |
| TOTAL: Feed Consumed by Flock (Year 4) | |
| 900,387.2 | |
| TOTAL: Feed Consumed by Flock (Year 5) | |
| 894,764.8 | |
| TOTAL: Feed Consumed by Flock (Year 6) | |
| 907,616 | |
| No. of Gunny Bags | |
| TOTAL: Gunny Bags Received (Year 1) | |
| 7,413 | |
| TOTAL: Gunny Bags Received (Year 2) | |
| 15,355 | |
| TOTAL: Gunny Bags Received (Year 3) | |
| 15,529 | |
| TOTAL: Gunny Bags Received (Year 4) | |
| 15,006 | |
| TOTAL: Gunny Bags Received (Year 5) | |
| 14,913 | |
| TOTAL: Gunny Bags Received (Year 6) | |
| 15,127 | |
| Gunny Bag Resale Income | |
| TOTAL: Gunny Bag Resale Income (Year 1) | |
| 259,455 | |
| TOTAL: Gunny Bag Resale Income (Year 2) | |
| 537,425 | |
| TOTAL: Gunny Bag Resale Income (Year 3) | |
| 543,515 | |
| TOTAL: Gunny Bag Resale Income (Year 4) | |
| 525,210 | |
| TOTAL: Gunny Bag Resale Income (Year 5) | |
| 521,955 | |
| TOTAL: Gunny Bag Resale Income (Year 6) | |
| 529,445 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Author | |
| Bernard Nkosi | |
| Proposed Business Name | |
| Yellow Yolk Farm Inc. | |
| Page Title | |
| Layer Farm Gunny Bag Resale | |
Breakdown of spent hen sales:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of manure sales:
| Rearing System & Frequency of Layer Egg Sales | |
| 1+2 | |
| Batch Size of Broiler Birds | |
| 10,000 | |
| Expected Bird Mortality Per Batch | |
| 40 | |
| Price of Manure | |
| Manure Price per KG | |
| 1.5 | |
| Feed vs. Manure Conversion Rate | |
| Manure to Feed Conversion Rate | |
| 0.7628458 | |
| Flock Manure Production | |
| TOTAL: Manure Produced by Flock (Year 1) | |
| 339,292.45 | |
| TOTAL: Manure Produced by Flock (Year 2) | |
| 702,787.26 | |
| TOTAL: Manure Produced by Flock (Year 3) | |
| 710,752.59 | |
| TOTAL: Manure Produced by Flock (Year 4) | |
| 686,856.59 | |
| TOTAL: Manure Produced by Flock (Year 5) | |
| 682,567.57 | |
| TOTAL: Manure Produced by Flock (Year 6) | |
| 692,371.05 | |
| Manure Sales Revenue | |
| TOTAL: Manure Sales Revenue (Year 1) | |
| 508,938.68 | |
| TOTAL: Manure Sales Revenue (Year 2) | |
| 1,054,180.89 | |
| TOTAL: Manure Sales Revenue (Year 3) | |
| 1,066,128.89 | |
| TOTAL: Manure Sales Revenue (Year 4) | |
| 1,030,284.89 | |
| TOTAL: Manure Sales Revenue (Year 5) | |
| 1,023,851.36 | |
| TOTAL: Manure Sales Revenue (Year 6) | |
| 1,038,556.58 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Author | |
| Bernard Nkosi | |
| Proposed Business Name | |
| Yellow Yolk Farm Inc. | |
| Page Title | |
| Layer Manure Production | |
Profit and loss of the poultry farm unit:
| Depreciation | |
| Annual Depreciation | |
| 30.33 | |
| Loan Interest | |
| Year 1 – Interest | |
| 310.05 | |
| Year 2 – Interest | |
| 254.36 | |
| Year 3 – Interest | |
| 199.13 | |
| Year 4 – Interest | |
| 143.28 | |
| Year 5 – Interest | |
| 87.12 | |
| Year 6 – Interest | |
| 30.67 | |
| Sales Revenues | |
| Sales Revenue (Year 1) | |
| 5,373,942.48 | |
| Sales Revenue (Year 2) | |
| 13,672,537.09 | |
| Sales Revenue (Year 3) | |
| 14,030,328.69 | |
| Sales Revenue (Year 4) | |
| 13,485,022.89 | |
| Sales Revenue (Year 5) | |
| 13,532,361.56 | |
| Sales Revenue (Year 6) | |
| 13,648,932.78 | |
| Cost of Goods Sold | |
| Direct Costs (Year 1) | |
| 3,106,736.48 | |
| Direct Costs (Year 2) | |
| 5,982,968.32 | |
| Direct Costs (Year 3) | |
| 6,043,823.36 | |
| Direct Costs (Year 4) | |
| 5,861,960 | |
| Direct Costs (Year 5) | |
| 5,829,154.24 | |
| Direct Costs (Year 6) | |
| 5,903,772.8 | |
| Gross Profit / Loss (Margin) | |
| Gross Margin (Year 1) | |
| 2,267,206 | |
| Gross Margin (Year 2) | |
| 7,689,568.77 | |
| Gross Margin (Year 3) | |
| 7,986,505.33 | |
| Gross Margin (Year 4) | |
| 7,623,062.89 | |
| Gross Margin (Year 5) | |
| 7,703,207.32 | |
| Gross Margin (Year 6) | |
| 7,745,159.98 | |
| Operating Overheads | |
| Capital Repayment of Loan – HIDDEN | |
| 931.22 | |
| Indirect Costs (Year1) – HIDDEN | |
| 109,780.16 | |
| Indirect Costs (Year 1) | |
| 110,711.38 | |
| Indirect Costs (Year 2) | |
| 110,711.38 | |
| Indirect Costs (Year 3) | |
| 110,711.38 | |
| Indirect Costs (Year 4) | |
| 110,711.38 | |
| Indirect Costs (Year 5) | |
| 110,711.38 | |
| Indirect Costs (Year 6) | |
| 110,711.38 | |
| EBITDA | |
| Earnings Before Deductions (Year 1) | |
| 2,156,494.62 | |
| Earnings Before Deductions (Year 2) | |
| 7,578,857.39 | |
| Earnings Before Deductions (Year 3) | |
| 7,875,793.95 | |
| Earnings Before Deductions (Year 4) | |
| 7,512,351.51 | |
| Earnings Before Deductions (Year 5) | |
| 7,592,495.94 | |
| Earnings Before Deductions (Year 6) | |
| 7,634,448.6 | |
| EBIT | |
| Earnings Before Interest & Tax (Year 1) | |
| 2,156,464.29 | |
| Earnings Before Interest & Tax (Year 2) | |
| 7,578,827.06 | |
| Earnings Before Interest & Tax (Year 3) | |
| 7,875,763.62 | |
| Earnings Before Interest & Tax (Year 4) | |
| 7,512,321.18 | |
| Earnings Before Interest & Tax (Year 5) | |
| 7,592,465.61 | |
| Earnings Before Interest & Tax (Year 6) | |
| 7,634,418.27 | |
| EBT | |
| Earnings Before Tax (Year 1) | |
| 2,156,154.24 | |
| Earnings Before Tax (Year 2) | |
| 7,578,572.7 | |
| Earnings Before Tax (Year 3) | |
| 7,875,564.49 | |
| Earnings Before Tax (Year 4) | |
| 7,512,177.9 | |
| Earnings Before Tax (Year 5) | |
| 7,592,378.49 | |
| Earnings Before Tax (Year 6) | |
| 7,634,387.6 | |
| Project Summary | |
| TOTAL: Running Costs | |
| 33,393,890.07 | |
| TOTAL: Revenues | |
| 73,743,125.49 | |
Total discounted cash flows of the poultry farm business:
| Comparative Interest | |
| Comparative Rate of Interest | |
| 6 | |
| Discounted Cash Flows | |
| Discounted Cash Flow (Year 1) | |
| -1,861,175.25 | |
| Discounted Cash Flow (Year 2) | |
| 6,744,902.72 | |
| Discounted Cash Flow (Year 3) | |
| 6,612,475.81 | |
| Discounted Cash Flow (Year 4) | |
| 5,950,348.51 | |
| Discounted Cash Flow (Year 5) | |
| 5,673,466.88 | |
| Discounted Cash Flow (Year 6) | |
| 5,381,942.01 | |
| Net Present Value | |
| Net Present Value of Future Cash Flows (NPV) | |
| 28,501,960.68 | |
| Project Benefit & Costs | |
| (SILENT) TOTAL: Revenues | |
| 73,743,125.49 | |
| TOTAL: Revenues | |
| 73,743,125.49 | |
| Project Cost | |
| TOTAL: Running Costs | |
| 33,393,890.07 | |
| TOTAL: Running Costs + One-Off Capital Cost | |
| 37,522,890.07 | |
| Benefit Cost Analysis | |
| Benefit Cost Ratio (B/C) | |
| 1.97 | |
| Currency Symbol (Abbreviated) | |
| R | |
| Unique ID | |
| PPR-L00013 | |
| Author | |
| Bernard Nkosi | |
| Proposed Business Name | |
| Yellow Yolk Farm Inc. | |
| Page Title | |
| Layer Farm Cash Flow (DCF, IRR, NPV, BCR) | |
The scedhuuled loan repayments for financing the venture:
| Loan Metrics | |
| Principal | |
| 7,268,466.4 | |
| Interest Rate | |
| 18.5 | |
| Effective Interest Rate | |
| 0.015416666666667 | |
| Term (Years) | |
| 6 | |
| Term (Months Converted) | |
| 72 | |
| Instalment | |
| 167,838.73 | |
| Interest 1 | |
| 112,055.52 | |
| Principal 1 | |
| 55,783.206333331 | |
| Balance 1 | |
| 7,212,683.19 | |
| Interest 2 | |
| 111,195.53 | |
| Principal 2 | |
| 56,643.2 | |
| Balance 2 | |
| 7,156,040 | |
| Interest 3 | |
| 110,322.28 | |
| Principal 3 | |
| 57,516.45 | |
| Balance 3 | |
| 7,098,523.55 | |
| Interest 4 | |
| 109,435.57 | |
| Principal 4 | |
| 58,403.16 | |
| Balance 4 | |
| 7,040,120.39 | |
| Interest 5 | |
| 108,535.19 | |
| Principal 5 | |
| 59,303.54 | |
| Balance 5 | |
| 6,980,816.85 | |
| Interest 6 | |
| 107,620.93 | |
| Principal 6 | |
| 60,217.8 | |
| Balance 6 | |
| 6,920,599.05 | |
| Interest 7 | |
| 106,692.57 | |
| Principal 7 | |
| 61,146.16 | |
| Balance 7 | |
| 6,859,452.89 | |
| Interest 8 | |
| 105,749.9 | |
| Principal 8 | |
| 62,088.83 | |
| Balance 8 | |
| 6,797,364.05 | |
| Interest 9 | |
| 104,792.7 | |
| Principal 9 | |
| 63,046.03 | |
| Balance 9 | |
| 6,734,318.02 | |
| Interest 10 | |
| 103,820.74 | |
| Principal 10 | |
| 64,017.99 | |
| Balance 10 | |
| 6,670,300.03 | |
| Interest 11 | |
| 102,833.79 | |
| Principal 11 | |
| 65,004.94 | |
| Balance 11 | |
| 6,605,295.09 | |
| Interest 12 | |
| 101,831.63 | |
| Principal 12 | |
| 66,007.1 | |
| Balance 12 | |
| 6,539,287.99 | |
| Year 1 Only – Interest | |
| 1,284,886.35 | |
| Year 1 – Cumulative Interest | |
| 1,284,886.35 | |
| Interest 13 | |
| 100,814.02 | |
| Principal 13 | |
| 67,024.71 | |
| Balance 13 | |
| 6,472,263.28 | |
| Interest 14 | |
| 99,780.73 | |
| Principal 14 | |
| 68,058 | |
| Balance 14 | |
| 6,404,205.28 | |
| Interest 15 | |
| 98,731.5 | |
| Principal 15 | |
| 69,107.23 | |
| Balance 15 | |
| 6,335,098.05 | |
| Interest 16 | |
| 97,666.09 | |
| Principal 16 | |
| 70,172.64 | |
| Balance 16 | |
| 6,264,925.41 | |
| Interest 17 | |
| 96,584.27 | |
| Principal 17 | |
| 71,254.46 | |
| Balance 17 | |
| 6,193,670.95 | |
| Interest 18 | |
| 95,485.76 | |
| Principal 18 | |
| 72,352.97 | |
| Balance 18 | |
| 6,121,317.98 | |
| Interest 19 | |
| 94,370.32 | |
| Principal 19 | |
| 73,468.41 | |
| Balance 19 | |
| 6,047,849.57 | |
| Interest 20 | |
| 93,237.68 | |
| Principal 20 | |
| 74,601.05 | |
| Balance 20 | |
| 5,973,248.52 | |
| Interest 21 | |
| 92,087.58 | |
| Principal 21 | |
| 75,751.15 | |
| Balance 21 | |
| 5,897,497.37 | |
| Interest 22 | |
| 90,919.75 | |
| Principal 22 | |
| 76,918.98 | |
| Balance 22 | |
| 5,742,473.58 | |
| Interest 23 | |
| 88,529.8 | |
| Principal 23 | |
| 79,308.93 | |
| Balance 23 | |
| 5,742,473.58 | |
| Interest 24 | |
| 88,529.8 | |
| Principal 24 | |
| 79,308.93 | |
| Balance 24 | |
| 5,663,164.65 | |
| Year 2 Only – Interest | |
| 1,136,737.3 | |
| Year 2 – Cumulative Interest | |
| 2,421,623.65 | |
| Interest 25 | |
| 87,307.12 | |
| Principal 25 | |
| 80,531.61 | |
| Balance 25 | |
| 5,582,633.04 | |
| Interest 26 | |
| 86,065.59 | |
| Principal 26 | |
| 81,773.14 | |
| Balance 26 | |
| 5,500,859.9 | |
| Interest 27 | |
| 84,804.92 | |
| Principal 27 | |
| 83,033.81 | |
| Balance 27 | |
| 5,417,826.1 | |
| Interest 28 | |
| 83,524.82 | |
| Principal 28 | |
| 84,313.91 | |
| Balance 28 | |
| 5,333,512.19 | |
| Interest 29 | |
| 82,224.98 | |
| Principal 29 | |
| 85,613.75 | |
| Balance 29 | |
| 5,247,898.44 | |
| Interest 30 | |
| 80,905.1 | |
| Principal 30 | |
| 86,933.63 | |
| Balance 30 | |
| 5,160,964.81 | |
| Interest 31 | |
| 79,564.87 | |
| Principal 31 | |
| 88,273.86 | |
| Balance 31 | |
| 5,072,690.95 | |
| Interest 32 | |
| 78,203.99 | |
| Principal 32 | |
| 89,634.74 | |
| Balance 32 | |
| 4,983,056.21 | |
| Interest 33 | |
| 76,822.12 | |
| Principal 33 | |
| 91,016.61 | |
| Balance 33 | |
| 4,892,039.59 | |
| Interest 34 | |
| 75,418.94 | |
| Principal 34 | |
| 92,419.79 | |
| Balance 34 | |
| 4,799,619.81 | |
| Interest 35 | |
| 73,994.14 | |
| Principal 35 | |
| 93,844.59 | |
| Balance 35 | |
| 4,705,775.22 | |
| Interest 36 | |
| 72,547.37 | |
| Principal 36 | |
| 95,291.36 | |
| Balance 36 | |
| 4,610,483.85 | |
| Year 3 Only – Interest | |
| 961,383.96 | |
| Year 3 – Cumulative Interest | |
| 3,383,007.61 | |
| Interest 37 | |
| 71,078.29 | |
| Principal 37 | |
| 96,760.44 | |
| Balance 37 | |
| 4,513,723.42 | |
| Interest 38 | |
| 69,586.57 | |
| Principal 38 | |
| 98,252.16 | |
| Balance 38 | |
| 4,415,471.26 | |
| Interest 39 | |
| 68,071.85 | |
| Principal 39 | |
| 99,766.88 | |
| Balance 39 | |
| 4,315,704.37 | |
| Interest 40 | |
| 66,533.78 | |
| Principal 40 | |
| 101,304.95 | |
| Balance 40 | |
| 4,214,399.42 | |
| Interest 41 | |
| 64,971.99 | |
| Principal 41 | |
| 102,866.74 | |
| Balance 41 | |
| 4,111,532.68 | |
| Interest 42 | |
| 63,386.13 | |
| Principal 42 | |
| 104,452.6 | |
| Balance 42 | |
| 4,007,080.08 | |
| Interest 43 | |
| 61,775.82 | |
| Principal 43 | |
| 106,062.91 | |
| Balance 43 | |
| 3,901,017.17 | |
| Interest 44 | |
| 60,140.68 | |
| Principal 44 | |
| 107,698.05 | |
| Balance 44 | |
| 3,793,319.12 | |
| Interest 45 | |
| 58,480.34 | |
| Principal 45 | |
| 109,358.39 | |
| Balance 45 | |
| 3,683,960.73 | |
| Interest 46 | |
| 56,794.39 | |
| Principal 46 | |
| 111,044.34 | |
| Balance 46 | |
| 3,572,916.39 | |
| Interest 47 | |
| 55,082.46 | |
| Principal 47 | |
| 112,756.27 | |
| Balance 47 | |
| 3,460,160.12 | |
| Interest 48 | |
| 53,344.14 | |
| Principal 48 | |
| 114,494.59 | |
| Balance 48 | |
| 3,345,665.53 | |
| Year 4 Only – Interest | |
| 749,246.44 | |
| Year 4 – Cumulative Interest | |
| 4,132,254.05 | |
| Interest 49 | |
| 51,579.01 | |
| Principal 49 | |
| 116,259.72 | |
| Balance 49 | |
| 3,229,405.81 | |
| Interest 50 | |
| 49,786.67 | |
| Principal 50 | |
| 118,052.06 | |
| Balance 50 | |
| 3,111,353.75 | |
| Interest 51 | |
| 47,966.7 | |
| Principal 51 | |
| 119,872.03 | |
| Balance 51 | |
| 2,991,481.72 | |
| Interest 52 | |
| 46,118.68 | |
| Principal 52 | |
| 121,720.05 | |
| Balance 52 | |
| 2,869,761.67 | |
| Interest 53 | |
| 44,242.16 | |
| Principal 53 | |
| 123,596.57 | |
| Balance 53 | |
| 2,746,165.1 | |
| Interest 54 | |
| 42,336.71 | |
| Principal 54 | |
| 125,502.02 | |
| Balance 54 | |
| 2,620,663.08 | |
| Interest 55 | |
| 40,401.89 | |
| Principal 55 | |
| 127,436.84 | |
| Balance 55 | |
| 2,493,226.24 | |
| Interest 56 | |
| 38,437.24 | |
| Principal 56 | |
| 129,401.49 | |
| Balance 56 | |
| 2,363,824.75 | |
| Interest 57 | |
| 36,442.3 | |
| Principal 57 | |
| 131,396.43 | |
| Balance 57 | |
| 2,232,428.32 | |
| Interest 58 | |
| 34,416.6 | |
| Principal 58 | |
| 133,422.13 | |
| Balance 58 | |
| 2,099,006.19 | |
| Interest 59 | |
| 32,359.68 | |
| Principal 59 | |
| 135,479.05 | |
| Balance 59 | |
| 1,963,527.14 | |
| Interest 60 | |
| 30,271.04 | |
| Principal 60 | |
| 137,567.69 | |
| Balance 60 | |
| 1,825,959.45 | |
| Year 5 Only – Interest | |
| 494,358.68 | |
| Year 5 – Cumulative Interest | |
| 4,626,612.73 | |
| Interest 61 | |
| 28,150.21 | |
| Principal 61 | |
| 139,688.52 | |
| Balance 61 | |
| 1,686,270.93 | |
| Interest 62 | |
| 25,996.68 | |
| Principal 62 | |
| 141,842.05 | |
| Balance 62 | |
| 1,544,428.88 | |
| Interest 63 | |
| 23,809.95 | |
| Principal 63 | |
| 144,028.78 | |
| Balance 63 | |
| 1,400,400.09 | |
| Interest 64 | |
| 21,589.5 | |
| Principal 64 | |
| 146,249.23 | |
| Balance 64 | |
| 1,254,150.86 | |
| Interest 65 | |
| 19,334.83 | |
| Principal 65 | |
| 148,503.9 | |
| Balance 65 | |
| 1,105,646.96 | |
| Interest 66 | |
| 17,045.39 | |
| Principal 66 | |
| 150,793.34 | |
| Balance 66 | |
| 954,853.62 | |
| Interest 67 | |
| 14,720.66 | |
| Principal 67 | |
| 153,118.07 | |
| Balance 67 | |
| 801,735.55 | |
| Interest 68 | |
| 12,360.09 | |
| Principal 68 | |
| 155,478.64 | |
| Balance 68 | |
| 646,256.91 | |
| Interest 69 | |
| 9,963.13 | |
| Principal 69 | |
| 157,875.6 | |
| Balance 69 | |
| 488,381.31 | |
| Interest 70 | |
| 7,529.21 | |
| Principal 70 | |
| 160,309.52 | |
| Balance 70 | |
| 328,071.79 | |
| Interest 71 | |
| 5,057.77 | |
| Principal 71 | |
| 162,780.96 | |
| Balance 71 | |
| 165,290.83 | |
| Interest 72 | |
| 2,548.23 | |
| Principal 72 | |
| 165,290.5 | |
| Balance 72 | |
| 0.33 | |
| Year 6 Only – Interest | |
| 188,105.65 | |
| Year 6 – Cumulative Interest | |
| 4,814,718.38 | |
Are you currently writing a poultry farm proposal?
Do you have plans for expansion or diversification of your poultry business?
Either way, I’d be interested to hear from you.
*Remember: print off the PDF by clicking the button at the start…
And then,
Leave me a comment below.
