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Poultry Farming

Broiler Farming: The Definitive Guide (2020)

Last updated on November 15, 2021 by Temi Cole 13 Comments

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This is a complete guide to broiler farming.

Any country, any breed, any model…written just for you.

So if you want to: [Read more…] about Broiler Farming: The Definitive Guide (2020)

Filed Under: Poultry Farming

Temi Cole
Mr. Temi Cole
🥇Author, The Big Book Project

Thanks for visiting my website.
"Let's make poultry profitable together!"
Begin by becoming a subscriber to my
newsletter, then when you're ready, join my interactive online course. Also, if you want me to help review & build your investment plans let's meet. Until then, stick around and enjoy this site - in which you'll find 300+ learning resources inc. articles, content hubs, sample plans, data sets, calculators and templates. Take a look around and enjoy the conversation..

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Layer Chicken: 72 Weeks In The Life Of A Layer Hen Farmer

Last updated on November 15, 2021 by Temi Cole 6 Comments

🥇Download The eBook

New to farming layer chicken?

Ever thought what it would be like to follow a new layer farmer taking his first steps?

This article was written for you.

It’s a detailed illustration taking you through the operational highlights.

Just the basics, step by step:

Fast.
[Read more…] about Layer Chicken: 72 Weeks In The Life Of A Layer Hen Farmer

Filed Under: Poultry Farming

Temi Cole
Mr. Temi Cole
🥇Author, The Big Book Project

Thanks for visiting my website.
"Let's make poultry profitable together!"
Begin by becoming a subscriber to my
newsletter, then when you're ready, join my interactive online course. Also, if you want me to help review & build your investment plans let's meet. Until then, stick around and enjoy this site - in which you'll find 300+ learning resources inc. articles, content hubs, sample plans, data sets, calculators and templates. Take a look around and enjoy the conversation..

My Story Start Here Free eBook LinkedIn

Poultry Feed Formulation: Nutrition & Homemade Methods (Layer/Broiler)

Last updated on November 15, 2021 by Temi Cole 6 Comments

🥇Download The eBook

Need expert advice on the best poultry feed formulation?

[Looking to make your own homemade chicken feed?:)]

If you want to know how making your own formula:

  • can make you more profit
  • produce better quality eggs and meat
  • give your farm a unique selling point

…then this is the guide for you (+ there’s an example formula at the bottom!).

Enjoy.
[Read more…] about Poultry Feed Formulation: Nutrition & Homemade Methods (Layer/Broiler)

Filed Under: Poultry Farming

Temi Cole
Mr. Temi Cole
🥇Author, The Big Book Project

Thanks for visiting my website.
"Let's make poultry profitable together!"
Begin by becoming a subscriber to my
newsletter, then when you're ready, join my interactive online course. Also, if you want me to help review & build your investment plans let's meet. Until then, stick around and enjoy this site - in which you'll find 300+ learning resources inc. articles, content hubs, sample plans, data sets, calculators and templates. Take a look around and enjoy the conversation..

My Story Start Here Free eBook LinkedIn

Poultry Houses: 197 Designs, Structures, Plans & Systems (PDF Guide)

Last updated on November 23, 2022 by Temi Cole 12 Comments

🥇Download The eBook

You might already know that there are literally endless poultry house designs, structures, systems and sizes…

But, what exactly are they? (All a bit of a maze, especially if you’re a poultry farming beginner).

Well, I’ve saved you HOURS in rooting around the net because I’ve put together a complete list.

Some are old and traditional.

Others are built using more modern techniques.

Others are innovative & experimental.

But I’ve got them all right here. And I made sure this list is up-to-date for 2022.

Let’s get started.

Key Goals

  1. The comfort of birds is directly related to their growth and laying performance.
  2. Key features for success: (a) light, (b) stable temperature, (c) fresh air, (d) space & (e) security.
  3. Cost-effective: both in capital building cost, but also to maintain.
  4. Convenient and amenable for labourers to perform at their best and not be discouraged.

Location

  1. Good water drainage to protect the foundations & keep the flock healthy
  2. Circulation of air for natural ventilation
  3. Not in a low pocket or hollow (to avoid cold air settling)
  4. Southern or southeastern alignment.
  5. Light loam to sandy soil for good drainage.
  6. Avoid heavy clay which holds water content.
  7. Tree protection or windbreaks to prevent direct drafts.

Brooder Houses

Definition:

Brooder houses are houses for chicks of a day-old and upward.

The first 7 days of care are the most critical days to get right when projecting the performance of broiler or layer chicken.

  1. Optimised for growth: chicks require conditions that will assist them best through their critical growth stages.
  2. Ventilated, but not draughty: helps chicks adopt suitable eating and drinking habits.
  3. At least, 1/3rd sq. ft each chick: providing ample space. Overcrowding kills and stunts performance.
  4. Ideally, a portable brooder house: to allow for siting adjustments for best results.

Colony Brooder House (including plans)

Definition:

A portable house for brooder chicks.

Colony Brooder House Photo

  1. Portable and easy to use for tending to brooders: can be built to different sizes and height. Successfully used by the United States Animal Husbandry Experiment Farm, Beltsville, Maryland.
  2. 10′ x 14′ (feet) is ample space for 300-400 chicks: but for best results, no more than 300 chicks.
  3. Built on runners for ease of movement: pulled by a vehicle across your site.
  4. Ventilated by: openings on 3 sides and ventilating board under eaves (especially for the summertime).
  5. Rain guarded windows: hinged at the top and swing outwards.
  6. Faux-windows: made of transparent plastic, to allow in UV light.
  7. Removable lower sections of the house: for increase ventilation and direct sunlight in warmer months.
  8. Stove heated: with a metal collared chimney to prevent burning of the roof. Plus waterproof against rain.

Front Elevation of A Colony Brooder House

Cross Section of a Colony Brooder House

Side elevation of a colony style brooder houseOverhead view of a colony style brooder house List of materials for a colony style brooder house

Long Brooder Houses

An alternative to colony-style brooder houses, more robust for winter brooding.

Long Brooder House

  1. 16′ by 14 wide’ (feet): hot-water pipe design for winter months especially. An alternative heating system to hot-water-piping is a radiant panel.
  2. Used for rearing pullets after brooder age: they are reared here until they reach the point of lay.
  3. Made long enough for the desired capacity: but usually 75′ to 150′ (feet) long.
  4. Varying width: 14′ to 25′ (feet).
  5. Internally, the house is divided into pens: of 4′ to 6′ wide with an aisle at the end of the house.
  6. Concrete flooring: sanitary and rodent-proof & sloping concrete yards for cleaning ease.
  7. Heavy mesh wire layer just above floor: installed on frames for removal by cleaning.
  8. Concrete yard: for exposure of chicks to direct sunshine.
  9. Some poultry farmers choose not to provide the yard space: instead, they use cod liver oil feed supplement to complement the lack of sunshine.

Laying Houses

Purpose made houses for your laying flocks throughout their productive lives.

Stationary Laying House Photo

  1. Backyard laying houses: 12′ to 16′ (feet) deep only, because floor space is not that large
  2. Commercial sized laying houses: 18′ to 24′ (feet) deep, because of larger floor space.
  3. Deeper houses provide more comfort to layer birds: because deeper houses provide greater flock density which protects against draught.
  4. Where land is cheaper and climate is mild enough: colony style housing can be adopted successfully each house having a capacity for about 25 – 100 birds.
  5. Stationary laying houses are preferable for most medium to large farm and commercial-scale businesses: because of cheaper construction cost (single structure, rather than many), less land use (more compact layout) & less labour in looking after birds.
  6. Stationary laying houses support maximum yield egg production: feeding and management practices are optimised in this set-up vs. colony style.
  7. Breeding would favour colony style housing: to give breeders a rest in the winter by offering them a bit of range. This produces better quality hatching eggs.
  8. Typical stationary laying house features: single structures, long and continuous houses, either divided into sections or multi-storey (many floors).
  9. Stationary laying houses are usually, 2-6 storeys tall or 30′ to 60′ (feet) deep): they are capable of housing capacity of several thousand hens at a time.
  10. On average, 1 sq. ft. of window space for 50 sq. ft. of floor space: is a general rule of thumb for ample exposure to natural light.
  11. In many cases, large farm barn buildings can be remodelled into multi-storey stationary laying houses: this is in an effort to conserve land space and to avoid unnecessary construction costs.
  12. If kept confined in this house long term without range, hens will not do well unless: clean, well ventilated, dry, draught free.
  13. Conveniently proportioned for labourers: to stand, work unhindered – therefore, about 2.5 to 4.5 sq. ft. per bird is adequate.
  14. Floor space allocation should vary: according to the housing system, size of the flock, weather condition & size of birds.
  15. More birds can be kept in a smaller floor space: where free-range is given at times during the year and the climate is milder.
  16. With larger sized flocks, 3 sq. ft. per bird for Leghorns and 4 sq. ft. per bird for general-purpose: is ample allocation for good results.
  17. In milder climate, where birds are kept in colony housing and free-range is given: then 2.5 sq. ft. per bird for Leghorn and 3 sq. ft. per general-purpose bird is enough.
  18. Colony sized housing is appropriate for flocks of 30 – 50 hens: as this scale of structure can be moved about relatively easily.
  19. Larger numbers are best kept in a long laying house: as a single flock, rather than smaller mini-flocks.
  20. Caring for larger flocks is more economical: less duplication of labour (not having to enter into multiple houses).
  21. Single flock rearing system is more disease prone: because of a lesser controlled environment, less individual attention from attendants and more densely packed floor space.

Colony Laying House PhotoSection of a colony style laying house

Yard and fences

This is the outdoor space surrounding the poultry houses that must be secured and is sometimes offered to birds as range.

3 storey laying house with yard space

  1. Usually confined to yards next to the house: which gives enough range to roam without wandering too far – for more efficient/economic management.
  2. Separate your flock: they should not have any contact with other livestock or wildlife to minimise the scope for transmission of disease.
  3. Ample amounts of clean and green space can add great value quality of bird and egg: foraging opportunities, fresh air and room to roam a little help to keep birds comfortable.
  4. Many farms adopt a 100% confinement model for layers: to maximise egg production.
  5. Where you have good grassland, allow up to 220 to 260 sq. ft. per bird (more space for poorer grass quality): this grants each bird enough roaming room and foraging opportunity.
  6. Frequently cultivated, sandy soil can support as many as 1,000 birds per acre: enough green food or vegetation for birds to get optimum benefit.
  7. Ideally, provide both front and rear yarding with 125′ to 150′ (feet) of depth & as wide as the house: gives birds enough liberty to enjoy the yard space.
  8. Rear and front yards are given to alternate the use: as one is being sown, the other is being occupied by the flock.
  9. General-purpose and meat (broiler) breeds require fences of 5′ to 6′ (feet) high, and Leghorns 6′ to 7′ (feet): to provide enough security against them fleeing the coop.
  10. To make sure Leghorns are securely penned in, provide a 30-degree upwards slope on the far fence post: this ensures Leghorns don’t have enough take-off space to clear the fence.
  11. A bit of barbed wire also helps on top of the fence: as a deterrent to birds.
  12. Clipping flight feathers: really makes sure your birds remain grounded.
  13. Don’t set boards at the top of fences: hens will look to perch on them.
  14. Wooden posts should be 8′ to 10′ (feet) apart and fencing should be hexagonal poultry netting: otherwise 16′ to 20′ for woven wire.
  15. Corner posts should be about 8″ (inches) in diameter, driven 4′ (feet) deep and braced: for maximum strength and integrity of the fence.
  16. Line posts should be 4″ to 5″ (inches) in diameter and driven 3′ (feet) deep: to keep the fence standing strongly throughout all seasons.
  17.  Treat post ends which are driven underground with creosote of like- treatment: will preserve against rot.
  18. As an alternative to wooden posts, it is advised smaller metal posts or pipe be used: 10′ (feet) apart, which give a more tidy appearance and can be driven more easily.

Roofs

Waterproof covering with ventilation benefits for all-weather protection of flocks.

Poultry House Roof Diagrams

  1. Well constructed and watertight: preventing the flock from being exposed to draft and rain.
  2. Shingle roofs not less than 1/3rd pitch (slant), but metal ones can be almost flat: because without a substantial run-off, water pooling can cause ingress and water seepage into the poultry house.
  3. Houses up to 20 ft. can adopt a single slant or shed roof shape: a girder in the middle offers just enough support to avoid sagging in the middle.
  4. Snowfall requires great girding: to enable the roof structure to successfully hold up under the additional weight.
  5. Combination or gable roofing is for houses between 16′ to 24′ (feet) wide: central peak offers 2 times the run-off potential of a single slant roof. Therefore the design can accommodate a wider scale.
  6. Monitor and semimonitor roofing are alternatives to gable slants: they provide similar structural benefit to A-frame housing.
  7. Shed type roof is cheaper than the combination rood: as it involves lesser materials and less labour. Plus, the combination roof looks better.
  8. Combination roof gives more headroom than shed design and better air circulation: because of the taller pitch in the middle.
  9. Gable roof is the most common type of roof for modern poultry housing: it offers the best air circulation and headroom.
  10. Gable roof at times is ventilated at the eaves with lath lattice: this allows for natural airflow provision for the flock.
  11. Semimonitor style roofing best suits very wide houses with a central alley: because it allows for more sunlight.
  12. Semimonitor faces south: so that the window openings face eastwards with the rising of the sun.
  13. Monitor style roofing has opposing windows: allowing for airflow and sunlight in from 2 different directions.
  14. Monitors laying houses can get drafty and cold: because of the double window exposure.

Front and rear

The poultry house often is built with outdoor access both to the front and rear of the house.

Front And Rear Concrete Poultry House Yards

  1. In warmer climes, a completely open-sided design is adopted, whereas a partially open-sided building with curtains for cooler ones: preventing the flock from being exposed to draft and rain.
  2. Openings in the front of the house using glass or curtains: allow for adjustments to airflow and sunlight.
  3. Large glass area at the front of the house: acts as a heat trap – keeping things warm in the day and cold at night (because glass radiates heat naturally).
  4. Unbleached muslin cloth over the open side: keeps rain and wind out.
  5. For wider houses, use windows between the floor and the dropping boards: this provides ventilation for more densely packed flocks.
  6. Larger windows can be used for more exposure to sunlight, ventilation and distribution of litter material: this is because hens scratch litter away from the sunlight.
  7. Adjustable ventilation panels and weather shields just beneath the eaves: can be set to 45-degrees maximum and made to seal shut tightly to avoid sweeping rain entering the house.
  8. Double-wall construction provides better insulation: for cooler climates.
  9. The front of the house should be built high enough: to allow ample sunlight into the house even in the winter months.
  10. Windows and curtains should be arranged in such a way as to let in maximum direct sunlight when opened and raised: because this optimises the conversion of minerals within the body of the bird, amongst other performance benefits.

Floors

Poultry house flooring for birds, labourers and general ease of maintenance and cleanliness.

  1. Concrete flooring is best for stationary, permanent houses: they are sanitary, easy to clean, rat-proof, relatively inexpensive.
  2. Concrete flooring should be covered with litter: to maintain dryness and warmth for birds, where the flock has direct contact with the floor (i.e. not caged).
  3. Lumber flooring is best used where the floor is 1.5 to 3 inches above ground level or where the ground is uneven: lower space between ground and floor makes harbours for rats, and is prone to rot.
  4. Board flooring should be raised high enough for air circulation: this adds a further source of ventilation for your flock, plus this keeps the floor dry. This style of flooring is common in portable houses.
  5. Dirt floors should be avoided: they are dusty which pollutes the air quality and unsanitary. Plus, litter doesn’t last as long on these compared with concrete or board floors.

Partitions

Dividing up the poultry house space into smaller compartments for better environmental control

  1. In long permanent poultry houses, build partitions every 40 ft. of length: to prevent drafts affecting the flocks.
  2. Also, roosts should be partitioned every 20 ft.: from the droppings board to the roof.
  3. Partitioning the house space also prevents overcrowding: as birds are physically encouraged to break up the flock throughout the house.

Roost and dropping boards

Internal fixtures and fittings of the birdhouses that encourage natural behaviour and collect droppingsPoultry Roosts And Droppings Boards Photo

Roosts And Droppings Boards Photo

  1. Anthracene oil or another preservative will kill insects: keeping your flock’s environment free from invasion.
  2. Roosts are placed near the back wall and 6″ to 8″ (inches) above the dropping board: hinged for ease of cleaning and infecting.
  3. Provide 7″ (inches) of roosting space per Leghorn bird and 10″ (inches) per Plymouth Rock: plus have roosts all at the same level, or else birds will fight to occupy the highest roost.
  4. Provide 3 roosts per 16′ ft. length of house, or 5 roosts in houses 20′ to 25′ (feet) deep: this gives enough variety of space use that you avoid the effects of overcrowding.
  5. For Leghorns, build roosts that are 13″ (inches) apart and 15″ apart for Plymouth Rock: but outer roosts should be at least within 19″ (inches) of the droppings board beneath.
  6. Guard the birds against reaching the dropping boards: by placing 1.5-inch mesh netting immediately beneath the roosts. This way you avoid the chicken pecking at their own waste and ingesting worm eggs often found in droppings.

Materials for building

Commonly accessible materials for building poultry houses with an affordable budget.

  1. Wood is the most versatile material for building poultry houses: it’s cheap, can be torn down relatively easily, or changed when compared with brick, hollow tile or concrete.
  2. Lumber must be: durable & seasoned – if for outside. (Second hand or used lumber can also be used).
  3. Hollow tile is cost-effective compared with wood and durable: a very good choice for buildings that require insulated walls, like brooder houses or incubator cellars.
  4. Concrete houses are to be avoided: because they are, by nature, cold and wet.

Framework

Structural orientation of the poultry house and the assembly of its parts for best results.

Lumber framework diagrams

  1. Sills: support the building.
  2. Studs or uprights: rest on the sills.
  3. Plates: lay on top of the studs.
  4. Rafters: rest on top of the plates.
  5. Sills are placed on concrete supports, concrete walls or wooden posts: for stability.
  6. Wooden posts: should be 6″ to 8″ (inches) diameter, 6′ to 8′ (feet) apart and 2′ to 3′ (feet) in the ground/ below frost level. And they preferably should be made from cedar, locust, chestnut, redwood and cypress.
  7. Concrete posts: are more durable than wooden ones.
  8. Dimensions of the sills will differ depending on the size of the buildings: 2″ by 4″ and of lighter material for colony style or single-wall construction, or 4″ by 4″ (inches) for a larger house or on with double-wall construction. 4″ by 6″ (inches) for 2-storey birdhouses.
  9. Planting the sills closer together for heavier buildings (or lighter material of sill): provides more structural integrity and strength.
  10. Concrete wall foundations should be adopted for larger houses: in such cases, the sills are bolted into the concrete.
  11. For portable houses, use runner 3″ by 4″ (inches) or 4″ by 6″ (inches) as sills: the corners require extra bracing to resist snapping or shearing when moved.
  12. Floor joists should be 2″ by 4″ (inches) or 2″ by 6″ (inches), depending on the span: they should be fitted 16″ to 20″ apart from one another. If the floor span is more than 10′ (feet) then central support should be used for the joists.
  13. Rafters are chosen according to the load requirement of the roof and span: 2″ by 4″ (inches) for lighter buildings where the clear span is not more than 12 ‘ (feet) and 2″ by 5″ (inches) for longer roofs and where a snow load is expected.
  14. Purlins and girders should be used where rafters are more than 12′ (feet) long: purlins are usually 2″ by 6″ (inches) and set on the edge of posts as supports for the roof. They are placed lengthwise of the house and about halfway along the rafter they relate to.
  15. In ridged-roofed designs, a board is placed between the end of rafters: this keeps the ridge straight and even.
  16. Collar beams and crossties should be fitted, with dimension 1″ by 6″ (inches): to prevent splaying of rafters on gable or combination roofs. Position these collar beams and crossties as low as possible as to gird maximally, but not to interfere with headroom for labourers. If hens roost on them, cover the space between beams and rafters with wire netting.
  17. Rafters cut 2′ (feet) apart from centre to centre: to avoid wastage of roof boards when cut.

Floors

Type of alternative flooring for the poultry house – materials and designs for differing circumstances.

  1. Concrete flooring must not be laid in direct contact with the ground: otherwise, the floors will be damp and cold, leading to bird discomfort and perhaps disease. To combat this, install flooring on a deep and porous foundation and well insulated.
  2. An even and complete floor coverage with litter should be used: this helps to keep the floor dry and warmer for the birds.
  3. Best practice for concrete flooring: lay tamped compact foundation of cinders, broken stone or gravel, approximately 6″ (inches) deep, with 3″ to 4″ (inches) of cement flooring on top. Between the two layers (the foundation and the cement floor) it is advised that an impermeable layer of tarred building paper inserted. This prevents moisture from rising up from the ground and getting into the concrete, thus making the floor damp.
  4. Best practice for wooden flooring: lay single thickness matched flooring in milder conditions and climates. In cooler climates, use double floor layering, with lower layer boards set diagonally and tight: the space between layers and building paper will help to insulate and prevent damp absorption.

Walls

Upright structures for upholding the integrity of the building.

  1. Mostly, single-walled and nailed directly into the studs: this provides a good combination of optimal cost-effectiveness and satisfactory strength.
  2. In colder climates, use double-thickness walls with space in between and also a layer of building paper over sheathing: this adds to insulation, heat retention and thermal efficiency.
  3. Lumber of 2.5″ to 6″ (inches) thick should be used: because boards are likely to shrink a  lot – even to produce cracks.
  4. The lowest board on the wall should extend beyond the sill: this makes sure the joint is entirely covered.
  5. Tight joints at the eaves: by cutting off the rafters with the rear wall and also covering the joint with roofing paper.
  6. Shutters under the eaves: allow for better ventilation in summer months and hot climates.

Roofs

Weatherproof, thermal efficient roofing design for poultry houses.

  1. 3-ply sheeting on the roof: to prevent heat loss.
  2. Planed on one side and laid close together: smooth side up helps you lay on prepared roofing successfully.
  3. Sheathing paper between sheaths and layers: this improves insulation and waterproofing.
  4. A slope of 1″ (inch) or more to the foot: to prevent pooling of rainwater, by quick run-off.
  5. The steeper the slant, the longer-lasting the roof: because it endures less weathering by preventing pooling of water.
  6. A good way of sealing off the end of the roofing paper is to bend them under the heating layer:  this prevents the tracking in of rainwater into the roofing structure by capillary action at the edges of the roof sheathing.

Paints and whitewash

A covering for the inside and outside of poultry houses giving a clean, hygienic and crisp finish.

  1. Layer of paint (on the inside and outside) of the poultry house:  adds a clean appearance and durability.
  2. Primer coat half paint and half linseed oil: is thoroughly brushed into the wood, to protect against moisture.
  3. Spread whitewash lightly and evenly: for complete coverage.

Artificial lights

Artificial lights are required to compensate for the lack of natural light in darker, winter months.

  1. Give hens 12 – 14 hour days with artificial lighting to extend winter months:  this increases the proportion of eggs laid in winter months (but not increasing the total egg output of the farm).
  2. 40-watt lamps 10′ (feet) apart, with 2 lights in a pen of twenty sq. ft. : for even and satisfactory distribution of light.
  3. 6′ (feet) high with reflectors of 16″ (inches) in diameter and 4″ (inches) deep: for the appropriate intensity of light for flocks.
  4. Greatest concentration of light should be on the mash hoppers and water dispensers: to encourage correct patterns of feeding in the flock.
  5. Lights can be programmed on a timer: to ensure automated delivery of artificial lighting and reducing man-power labour hours.

Artificial heating

Power-generated heating for the correct running of flock management including watering and normal usage of the entire floor space

  1. Prevent freezing of water and keeping the house dry from damp and moisture: this ensures the folk is well watered, maintaining good feeding habits and that disease from damp does not occur.
  2. Well structured and insulated poultry houses ought to be artificially heated: or else it proves too costly and inefficient.
  3. Typical methods of artificial heating: hot water system, electrical panel heaters or stoves fueled with coal briquettes.

Insulation of walls and roofs

An additional layer that traps heat (reduces heat loss) laterally and vertically.

  1. Double walls for insulation: preventing sudden changes in temperature or sharp gradient. Plus, is a reducer to condensation.

Ventilation

Planned airflow system for the poultry house, helping flock obtain good quality of air aiding performance.

Fully ventilated shed roof colony style laying house with openings wide open

  1. Usually controlled by openings in the front of houses: this plus the rafters is usually more than enough to raise a flock successfully.
  2. No. (or frequency) or openings: is dependent on exactly how much ventilation is required for the climate, or flock density.
  3. Best practice for poultry house ventilation via openings & windows: 4″ to 18″ (inches) wide and high up in the front and back of the house. This is enough to avoid condensation moisture but still allow enough heat retention.
  4. On cold nights: rafter ventilation is all you need.
  5. Ventilator flues: are advised for houses with 24′ (feet) depth or more,  and where walls are insulated. 1 sq. ft. of flue are for 100 hens. Flues should be just in front of droppings boards. Flues built with a slide to adjust depending on the weather.

Shed roof laying house with roof ventilator flues

Fixtures & equipment

Nests, hoppers and drinkers – anything that would be provided to enable normal bird behaviour and facilitate performance.

Poultry Nest Box Diagram

  1. Avoid excessive items: otherwise interferes with bird behaviour, hinders the job of the labourers, adds unnecessary capital cost and makes cleaning more difficult.

Nests

Small, comfortable niches where hens can rest, lay and sleep.

  1. Location: placed on end walls or partitions & high enough that birds can work beneath them.
  2. User-friendly: arranged so then the hens can easily get into them.
  3. Dimensions & design: about 12″ to 14″ (inches) square, about 12″ (inches) high and a lip of about 4″ (inches) at the door to prevent litter from escaping or spilling out.
  4. Distribution: 1 nest for every 4 to 5 hens.
  5. Style: darkened nests for the minimal egg-eating habit of hens.

Dry mash hoppers

Eating containers for birds to gather and economically receive their feed.

Wooden Layer Dry Mash Hopper Photo

  1. Key benefits: minimal wastage of feed, keep litter and dirt out. This keeps your birds performing and growing a peak performance.
  2. Size: long enough to enable birds to eat with ample space and from both sides. 1′ to 1.5′ (feet) long for every 10 birds.
  3. Small sections added for shell and grit: to encourage these good eating behaviours.
  4. Small open troughs: are great for small birds and chicks and getting their feeding 2 to 4 birds at a time.

Drinking Stations

Drinking apparatus for birds to gather around and get refreshed.

Man filling trough feeder and water fountains for brooder house

  1. Placed on platforms: to keep the dispensers sanitary and free from dust/dirt. Also, put slats on the floor of the platform to allow droppings to fall through for easy collection.

Poultry Farm Layout

These are just some of the practically useful poultry farm layout examples on the internet.

I pulled them together for your viewing pleasure and benefit, so to speak.

  1. One man 10-acre poultry farm: well-organised use of space for using a 10-acre plot and running a layer and breeder farm, with free-range access to crops for foraging. Natural windbreakers and orientation for sunlight etc.

One Man 10-Acre Poultry Farm Plans

  1. 1,000 hens 10-acre poultry farm: well laid out plans for accommodating 1,000 hens on 10 acres.

 

1,000 hens and 10 acre poultry farm plans

  1. Broiler farm layout with feed mill: a good example of spatially organising a simple commercial broiler farm, complete with feed mill and incinerators. I like the fact this plan details recommended distances between structures on-site.

Broiler farm layout with feed mill and distances between buildings

  1. Buttercup Poultry Farm Poster: a useful artist’s impression of what a 200,000 layer farm would have been laid out like in the 1920s, for example. From the picture, you can only imagine that the smaller brown huts are where the brooder colony style houses were sited and perhaps where the pullets were kept. Layers, of course, were in the large houses.200,00 Layer farm illustration Buttercup Poultry Farm (1928)
  2. 1+3 layer hen system and 4+1 broiler system: ever wanted to know what the layout plans would look like for your favourite layer hen or broiler rearing system? This is a simplified sketch (which needs LOTS of zooming up) that helps puts things into perspective for your poultry farm project report.1+3 Layer farm and 4+1 broiler farm rearing system layout plans
  3. Norfolk Black 40,000 bird free-range farm plans: according to Norfolk Black Chicken (www.norfolkblackchicken.com) this bird is: “…corn fed and slow grown for succulence and an unrivalled depth of flavour.” This is an architectural drawing and plan for a 40,000 strong, 3 shed free-range farm.

Norfolk Black Chicken 40,000 bird farm plans

  1. How to design a modern automatic chicken farm (Africhic): this next example I’ve included as a useful step-by-step tutorial for designing what might be a more modern approach to poultry farming.

‘Controlled Environment’ Houses

Now, you might have landed on this post looking for something a little more technological.

Environmentally controlled poultry house

Perhaps a computerised automated house capable of housing 100,000 birds, with a control shed and all the motorised and programmable help possible.

If that is the case,

I have a serious investment proposal for you.

What would you say if a leading, international poultry farming professional told you that:

…a controlled environment shed could increase your feed conversion ratio by as much as 1 point?

In his own language,

“For larger companies, one FCR point is worth up to US$ 300,000 per year.”

Here is my analysis on how you can take Dhia Alchalabi’s advice and practically make it profitable…

My take:

  1. “Increase Your Poultry Profit By $300,000 with optimal environmental control.” (Premium Newsletter & PDF): a thorough guide into how you can use tight poultry house environmental control to slash your feed costs and rocket your profit.
  2. Computer monitored house: this is a simple schematic diagram of how a computer monitored house is relayed in a circuit. A good overview if you are new to the idea.Computer Controlled Poultry House Schematic DiagramInside a computer controlled poultry house
  3. Poultry housing (Slideshare): An academic approach to a guide on poultry housing – very thorough and a good slideshow format – a kind of picture book on everything you might find in a commercial scale environmentally controlled chicken house.

Poultry Housing from PVNRTVU, College of Veterinary Science,Rajendranagar, Telangana, India

 

QS construction plan of an automated house

Pictures of an automated, environmentally controlled poultry house are actually quite easy to find online.

However, getting quantity surveyor approved plans and accurate cost estimations is HARD.

This is why I have included this next section a reference to www.estimationqs.com

Authored by Derrick Navara [a qualified Quantity Surveyor ‘QS’ with experience in construction-related projects],

The website hosts THE MOST detailed QS plans of some very complex construction projects, including…

This one (essential if you’re planning a computer-controlled poultry house):

  1. Cost of building a poultry house for 20,000 layers: an impressive step-by-step tutorial for building an automated environmentally controlled poultry house for 20,00 layer birds. Every nut and bolt is accounted for here in this cost analysis and with precise amounts of material – with layouts. Great work.

3D software generated design of an environmentally controlled poultry house for 20,000 layers

 

Budget calculation of an environmentally controlled poultry house

As a first-timer…

…calculating a detailed construction budget for an ‘environmentally controlled’ poultry house is near impossible without professional input.

It’s a completely different type of project to building a wooden shed.

For a start, half of the components involved are completely foreign to most laymen.

But without accurate estimates, you simply can’t calculate the capital cost or raise funding.

So, I put this chart together based on the findings of Derrick Navara of Estimation QS.

Here it is:

  1. Cost of building a poultry house for 20,000 layers (COST ANALYSIS CHART): a proportional breakdown of the construction cost elements of the project.

(Source: https://estimationqs.com/cost-of-building-a-chicken-house-for-20000-layers/)

A 1,000 bird poultry shed construction budget calculation

In response to a question from one of my readers,

I wrote this example budget calculation for a 1,000 bird pen.

As a premium subscriber, I’ll answer your questions via my Q&A board.

Example Poultry Houses from around the World

In this section, I share some leading examples of poultry house designs from around the world.

I’ve taken a selection of houses with different:

  • materials
  • sizes
  • systems
  • use

…and on different types of land, locations and in a variety of climates.

They should help you have an eye for what currently works out there.

Please don’t think that these are entirely representative of each country’s poultry farming enterprises –

Rather think of this as a photo scrapbook of example poultry farm buildings.

I tried to make them as varied as possible to appeal to many types of poultry business model.

(Also, for a decent beginner’s  overview of poultry housing systems, complete with pros and cons take a look at this guide: https://agro4africa.com/types-poultry-housing-system/)

India

  1. India Poultry Farm No.1: ANE, At Post : Shindewadi, Tal: Junner , Dist : Pune, Shindewadi, Maharashtra 412411, India. (LINK)Open Sided Zinc Boiler House in India PhotoTarpaulin Lined Electrically Lit Brooder House PhotoOpen Sided Broiler House

Nigeria

  1. Dayntee Farms Limited: Kilometre 5, Offa Rd, Amberi Village, Ajasse Ipo, Nigeria. (LINK)Layer house with roosts and trough feeders with nesting boxesLumber Broiler House w/ Open Sides

South Africa

  1. Ismails Poultry Farm (LINK)Roll down open sided concrete broiler house

Kenya

  1. Kari Imrpoved Kienyeji Chicken: Ruaka Town, Muchatha, Kenya (LINK)Wooden coop for meat birds photoWooden Post Structure Poultry house Photo

United States

  1. Pastured Life Farm: 6944 210th Pl, O’Brien, FL 32071, United States (LINK)Tractor pulled mobile coopOpen sided gable roof poultry house with tree windbreakTractor pulled poultry crate skate photo

Philippines

  1. Fermi Farm Free Range: Unnamed Road, Pola, Oriental Mindoro, Philippines (LINK)Thatched Wooden Post & Cane Poultry House with Mesh Walls PhotoElectrified Brooder House On A Slope Photo

Zambia

  1. Poultry & Farm: Makeni Konga Makeni, Zambia (LINK)Concrete partitioned metal pole and zinc roof poultry house White washed wall and sawdust litter brooder photoZinc roof metal pole brick ended open sided broiler house photo

Ghana

  1. Westhood Farm: Sasaabi, Ghana (LINK)Breeze block wooden window frame open sided poultry house ph0toBrick partitioned open sided feeder suspended poultry house photo

Uganda

  1. Kande Poultry Farm (Uganda) Ltd.: Semuto Town council, Sebagaala Zone Semuto Town Council, Uganda (LINK)Permanent concrete open sided poultry house photo

Zimbabwe

  1. Rising Dawn Livestock And Poultry: 99 Seke Road, Hatfield, Zimbabwe (LINK)

Straw Litter Wooden Pole Shed Style Roof Poultry House Photo

Now, over to you…

That complete’s this guide to poultry houses.

I included various designs, structures with their plans, construction budgets with materials costs, site layout, systems of housing, components, photos and even country examples…

Are you currently planning a poultry house construction project?

Do you have experience with poultry buildings and have something to add?

Either way, I’d be interested to hear from you.

Leave a comment below, now.

References


https://estimationqs.com/cost-of-building-a-chicken-house-for-20000-layers/

https://quizlet.com/53374101/unit-12-print-reading-for-construction-residential-and-commercial-flash-cards/

https://patents.google.com/patent/US3206121

University of Noth Texas Digital Library

Sonoma Library

www.alphafarms.co.uk (featured image)

Filed Under: Poultry Farming

Temi Cole
Mr. Temi Cole
🥇Author, The Big Book Project

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Poultry Farm Loan: Unmissable Reasons – Why You Don’t Need One!

Last updated on November 15, 2021 by Temi Cole 2 Comments

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Today, I’m going to take you through the steps of how poultry farm loans work and…

…why you don’t need one!

I know.

The challenge of lifting your enterprise off the ground with little available capital might be overwhelming.

But before applying the blinkers…

Hear us out.

If you want to learn:

  • how poultry farming loans work,
  • how a government grant works,
  • the best way of funding your project

Read this guide.

What exactly is a poultry farm loan?

A poultry farm loan is…

“…a promissory transaction of money given (capital sum) by a lender [donor/giver] to a borrower [recipient],

…for the purpose of buying capital business assets to run a poultry farm,

…the borrower being bound by law to an agreement to restore the money in full to the lender within an agreed timescale and according to a prescribed schedule of instalments

…the agreement therefore having a clear commencement and a termination.

However:

…the money given comes at a real cost to the borrower,

…this cost is added on top of the repayment of the capital sum,

…the cost of borrowing is calculated as a percentage rate of return, known as ‘interest’

…the end result is the capital sum being used by the borrower for the duration of the agreement

…during which the borrower works to repay the capital sum back to the lender in full:

  • on schedule, &
  • with additional interest at the agree rate, paid on top.

Once both capital sum and interest monies are paid in full to the lender, the agreement is terminated and there are no further obligations or binding duties remaining for either party to fulfil.

Often as a measure of counteracting, “

A definition by The Big Book Project

The most common reasons for start-up farmers seeking after loan financing is to acquire:

  • land
  • buildings
  • equipment
  • stock

Do you find yourself being in a situation similar to our  ‘would-be’ poultry farming entrepreneur below?

Arjun - Bharuch, Gujarat Poultry Farm Loan Applicant

Meet Arjun…

Arjun has designs on beginning a layer poultry farm in his home town, Bharuch in Gujarat, India.

He has a well paying I.T. contractor day job, but is set on making the transition from 9-5 into full time farming.

He owns a plot of land which measures just over 1 bigha, which until now has been left unused, but remains in tidy enough condition.

Arjun intends to cultivate a mixed agricultural production on his farmland including a variety of vegetable crops and of course his layer farm.

He wants to house 5,000 layer birds – taking approximately 10,000 sq. ft of his available land.

With this capacity of egg farm he hopes to produce enough to serve the needs of 30+ popular hospitality outlets in the city, Ahmedabad.

In order to start-up, he requires the following:

  • poultry housing,
  • feeders,
  • drinkers,
  • ventilation and heating equipment,
  • a delivery vehicle,
  • trays and
  • 1st year operating expenses (to replace his wages)

Whilst he has savings, he prefers not to use them to start his venture – but opts for applying to borrow bank funds via a poultry farming loan.

Why not use the savings?

Without the loan…

Arjun is not confident that his personal savings will be sufficient to acquire all the capital assets which he has shortlisted to run the farm with…

As well as maintaining his household income.

Now to take a look at some poultry farm loans and learn how they work…

Arjun begins his search for a poultry farming loan by filing through advertised loan products online, seeking for the most favourable of terms and conditions to kick start his layer poultry farm.

Quite swiftly, Arjun found a selection of seemingly viable poultry farm loan opportunities in Gujarat.

He now reviews their application procedures & qualification criteria to see if they he is eligible to apply.

Whilst examining the small print of said bank loan opportunities (prior to any commitments), he also examines governmental grant subsidies which are available for ventures like his.

Before he puts his mind to arriving at a decision – he first plots out his projected poultry farming costs and profits using a project report.

He elects to download our 10,000 layer project report for an example financial plan to illustrate his plan in detail.

Having studied the details of the example project report, Arjun developed greater understanding of how a layer farm would be commercially calibrated…

But came away unsure about the real benefit vs. cost of starting his layer farm on borrowed funds rather than his own money.

Having searched online for poultry farming business consultants, Arjun found The Big Book Project team and submitted a query for help in understanding…

The true cost of taking out a poultry farm loan.

Here follows our professional advice on bank loans for poultry farms…

How bank loans and mortgages work for starting up a poultry farm…

According to our definition of loan above, there are various components of a poultry farm loan, principally:

  • capital lump sum
  • repayment instalments
  • repayment schedule
  • interest

In an ideal scenario (post agreement – that is) every point on the list above would be accounted for and fulfilled.

e.g. the capital sum lent would be returned, by planned instalments, according to schedule with the cost of interest at the desired rate paid on top…

However, there is an important factor unaccounted for which ought to be addressed:

Risk.

What about risk?

The underlying reality involved with every loan arrangement is the ‘what-if’ scenario of:

“…borrower default.”

This simply means:

“What damage will be done if the borrower is unable to keep to the agreement and fulfil the terms?”

The real potential for this adverse occurrence of:

Failure to keep the terms of borrowing…

Gives credence to the lender laying on a condition of surety or security against the loan given.

Quite simply,

There is a clause added to the term and conditions of the loan which states:

If the borrower is unable to upkeep the terms agreed…

the borrower will forfeit, or lose, their possession of a worthy asset.

In the consumer finance market, where individuals borrow, for example:

Mortgages (long term loans) for the purpose of buying and living in a house:

They pledge the possession of the house they live in as surety to the lender, should they default on the repayment terms.

So, in real terms, if the borrower defaults on the agreement, the house they live in and call home…

(…which throughout the term of borrowing actually belonged to the lender – making the borrower a tenant renting from the lender for 40 years, for example…)

…will be seized by force, by the lender.

Secured Agricultural Loan

In agricultural business, the underlying assets are land and buildings.

As a start-up poultry farmer, let’s say, whether you have land in your possession or not…

If you seek the money of a bank, for example, to purchase infrastructural items like:

  • land
  • buildings (construction)
  • equipment
  • machinery
  • stock etc.

The bank will expect in return, as written in the terms of the loan arrangement, that in the event of a default…

You, the borrower, will simply be forced, backed and enforced by law, to hand over possession of the land and buildings used for the farm.

Repossession.

By etymological or root definition:

  • Re-: Latin re- “again, back, anew, against,”
  • Possession: possidere “to have and hold, hold in one’s control, be master of, own,”

So, what you thought was your asset, is simply taken back by the one who legally possesses and has the power to legally enforce it’s return.

There is no recompense for your time to date, or your labour, nor consideration for your personal state following repossession…

Just a straight forward reclamation.

What’s the margin of failure?

It needn’t be much.

And it needn’t be reasonable.

In other words, the lender carries a guarantee that should the deal not go according to plan…

That they can liquidise the underlying/pledged assets, which by way of the legal written loan agreement, are (upon signing the paperwork) already transferred into pending ownership of the lender…

The lender from the time of signing is already guaranteed to gain, either way.

But…

On the contrary…

What guarantee does the borrower have…

Should the business they plan not afford them the ability to keep up with the loan terms of repayment?

Answer:

None at all.

Should the business not provide the scheduled profits according to plan…

The borrower carries full liability for upholding the terms of the loan agreement, regardless.

What if business goes against you? What’s your contingency?

As with life firstly and therefore business thereafter, in general:

Things don’t always go to plan.

And there are a multitude of things which can go against the theoretical assumptions of your poultry business plan:

  • MACRO ECONOMIC RISK…
    • taxation changes
    • foreign exchange fluctuations
  • MICRO ECONOMIC RISK…
    • price of chicken falls
    • cost miscalculations
    • staff shortages
    • bird mortality/sickness

…what if any of these entirely plausible happenings occur and work against your planned profits…

Causing you default on your loan terms…

Where is your guarantee or surety should these things happen?

Loan Risk: A 2-Way Street

Risk is not unilateral…

It is works both ways.

Why bind yourself to an inequitable agreement which puts you at great disadvantage from the start of your venture?…

(And unnecessarily so.)

Why take a bank loan to start your poultry farm?

Is it an option worth taking?

Or should it even be an option?

What does the poultry farm loan application process look like?

Take the details declared on the application form of the IDBI Bank as an example:

  1. Limits and balances of any other credit arrangements held by the borrower
  2. Formal, or informal borrowing arrangements
  3. Land holdings of the borrower
  4. Income statements for any other current businesses of the borrower
  5. Net worth (assets and liabilities) of the borrower
  6. If you have a guarantor, their contact details and net worth

In order to have the credited funds released to you by the bank, the bank will require the information above.

But why so much?

What relevance does all that information have in the scheme of arranging a bank loan?

What is the underlying rationale of the questions asked during the procedure of a poultry farm loan application?

Point no. 1 ‘other credit or borrowing arrangements’ –

  • This gives the bank lending the poultry farm loan a view of:
    • …what other lending institutions might also have competing claim against assets held by the borrow, in case of default.

Point no.2 ‘formal or informal borrowing arrangement’ –

  • This gives the bank lending the poultry farm loan the ability to:
    • …estimate your true cash flow position and therefore feasibility of paying the obligatory sums whilst also keeping up with other current debt arrangements.

Point no.3 ‘land holdings held by the borrower’ –

  • This gives the lending bank an idea of:
    • …all land assets up for grabs should the borrower default their payments and fall into collapse/decay.

Point no.4 ‘business income statements‘ –

  • This gives the new bank visibility of:
    • …the current business earnings of the borrower, to see what contingency income is already in the hand of the borrower and available to pay the obligation in question, should the poultry farm underachieve, or fail

Point no.5 ‘net worth’ –

  • This gives the bank lending the poultry farm loan:
    • …sight of valuable possessions held by the borrower which could be liquidised (i.e. sold in exchange of money) upon the event that the proposed poultry farm doesn’t fulfil its planned potential.

Point no. 6 ‘guarantor‘ –

  • This gives the bank the promise of:
    • …another person who in the event of the borrower defaulting on their arrangement will assume the place of the borrower in terms of the legal obligations of the agreement.
      • i.e. …if after all the defaulting borrower’s assets and possessions are liquidised to provide monetary recompense to the lender, and there still be outstanding liability to claim by the lender, the lender will approach the guarantor having power to legally charge them for fulfilling the arrangement

Ask yourself the question…

  • Is this level of disclosure to all your personal financial information…
    • (pertaining not only to your proposed poultry farm enterprise)
  • …worth handing over for such a short/medium term use of some lender’s money?

Also, if the lending party requires such an invasive screening of your personal & financial condition…

Plus, requiring the personal collateral of an able substitute and acting guarantor, should you as the borrower default…

Are you as comprehensive in your poultry farming business planning – to support a confident projection of future profits and earnings?

If the bank is this diligent in evaluating your financial position prior to lending…

Have you done at least as much due diligence in your own project planning, in protecting your own future entrepreneurial benefit?

If the answer is, no:

Then you should consider revising your poultry business plans to have a far more evidenced foundation.

How hard is to qualify for a poultry farm loan? Eligibility, criteria and questions…

Summarising from various lender’s (inc. State Bank of Pakistan) published eligibility requirements for poultry farm loans…

Poultry Farm Loan Eligibility

The following is a brief list of eligibility criteria:

  • sufficient knowledge, expertise and training in poultry farming
    • …this ensures that handling of the poultry farm is in competent hands – being able to fulfil the operational duties to an optimal level
  • repaying capacity
    • …the likelihood that the borrower is able to pay the lender back with interest over the agreed loan duration, not only from the proposed poultry farm profits, but also from existing income
  • managerial skills
    • …how feasible the financial projections and estimations on paper really are in the hands of the borrower
  • margin money (borrower’s contribution)
    • …the borrower contributes as much as 25% of the total loan amount out of their own pocket towards the loan amount applied for

Ask yourself…

If you already have the:

  • …qualifications and skills to successfully run the poultry farm successfully
  • …income to incrementally repay the capital sum on a loan, plus interest over the medium term
  • …managerial skills to achieve the financial projections contained in your project report
  • …at least 25% of the money you require for a loan in hand anyway

…this begs the question…

Why would you then be looking to legally bind yourself to a loan arrangement and run the real risk of losing your land?

Or worse, why would you risk your home and future earnings?

Why not start smaller and within your means? And without the risk of losing assets if things don’t go exactly to plan.

What does a bank look for in a model report for a poultry farm loan?

A model report for a poultry farm loan tells a bank or lender:

Your precise approach and adopted business modelling for achieving the expected profits.

The key features of a model report for a poultry farm loan are as follows:

  1. Type, capacity and rearing model
    • …exactly what type of poultry farm you have in mind & how many birds you expect to be rearing at any given time, plus the system of organising them for optimal results
  2. Poultry buildings
    • …how you expect to arrange the birds into housing according to your prescribed rearing model
  3. Farm equipment
    • …the necessary feeder, drinker and other relevant equipment needed for running your poultry farm
  4. Batches & rearing intervals
    • …your system for replenishing your poultry flock with optimally productive birds to keep your business output consistent
  5. Operational costs
    • …your estimation of direct costs of sale and overheads for your poultry farm business
  6. Start-up capital requirements
    • …how much total start-up funds would be required to acquire the necessary items to begin your proposed farm operation at the planned size and scope
  7. Production
    • …how much output you expect your poultry farm to produce at the given intervals of production
  8. Income statement
    • …how much profit (surplus income) your proposed poultry farm is expected to make annual over the loan duration
  9. NPV (net present value)
    • …how much the money loaned today would be worth at a future date as discounted against the proposed interest gained of an equivalent investment opportunity
  10. BCR (benefit cost ratio)
    • …how much the respective costs of the proposed poultry farm are covered or can be absorbed by the corresponding benefits or profits of the business

The conclusion of the report being BCR (benefit cost ratio) is the indicator by which any prospective lender will evaluate the attractiveness of your proposed poultry farm business…

‘Attractiveness’, in other words meaning…

The ability of your proposed business (on paper, at least) to provide the profits by which to suffice:

  • ongoing costs of running
  • earnings for the owners
  • return for investors
  • *repayments for lenders*

…and not necessarily in that order.

Where a business on paper offers the potential to achieve all of these benefits and more – banks and commercial lenders will be very willing to lend (all other eligibility factors being in place, of course).

Where the proposed benefits are insufficient to cover such costs, banks will reject the proposal.

Having produced such a report for the purpose of obtaining a secured poultry farm loan…

Why would you hand over the potential future benefits of your poultry farm to paying back a lender (?)…

Who during the course of running the farm will simply seize the land, or buildings should you be unable to keep to the terms of your loan agreement (thus derailing your earning potential to dig yourself out should things improve)?

Think carefully.

How do government subsidies/grants for poultry farm loans work?

Governments worldwide offer subsidy schemes and grants to ‘would-be’ poultry farmers who are interested to apply for commercial funding.

But what kind of government subsidy (financial help) is available for a poultry farm loan?

Everybody knows a government handles public funding, as opposed to private funding.

And that governments sometimes provide both loans and grants to producers of various kinds via finance schemes, making available capital sums for investment to individuals and businesses who meet the criteria for receiving.

Loans and grants/subsidies principally differ on the premise of repayment.

Loans are to be repaid.

Whereas grants and subsidies are not.

The definition of subsidy:

  • Latin subsidium “a help, aid, assistance.”

Why and how do governments use subsidies for assisting enterprises like poultry farms?

Where the cost of commodities are relatively high and therefore prohibitive for many to access…

Governments will often allocate protected (ring-fenced) budgets from public funding, for the purpose of reducing the cost of the said commodity on the open market.

However, the mechanism for how this works in practice may not necessarily be as most lay-consumers would expect.

Take the example of the Nabard – Poultry Venture Capital Fund Scheme.

The method of delivery for scheme is known as a back-ended subsidy.

What is a back ended government subsidised poultry farm loan?

“A back-end subsidy involves direct payment of a subsidy at a later date to the borrower, who pays the market rate up front.“

  • Govt may pay interest subsidy directly to borrowers – The Hindu Business line

This simply means that in order to encourage prospective borrowers to obtain poultry farm loans from commercial providers like, State Bank of India (SBI)…

The Indian government (in this case) promises to reduce the cost of the commercially available loan repayments by 25% for the borrower’s sake, by way of granting the borrower a lump sum capital payment…

…equivalent to 25% of the total loan value…

…the catch…

But this back ended payment is only paid to the borrower after the bank loan has been repaid in full by the borrower according to the repayment schedule.

Only after the commercial loan has been repaid, will the government then release the subsidy funding to the borrower directly.

This in effect indeed does the job of decreasing the cost of the loan taken by the borrower (assistance), which were taken upfront…

Albeit, by way of a back-ended capital subsidy…

i.e. at the end.

Example poultry farm loan scenario…

Indiafilings.com the online tax filing service for India gives great insight as to what the stipulations of:

  • margin money (entrepreneurs contribution)
  • back ended capital subsidy
  • bank loan

…would look like when explained side-by-side…

The following assistance is provided under the Poultry Venture Capital Fund Scheme:

  • Entrepreneurs contribution (margin) – for loans upto Rs.1 lakh, banks may not insist on margin as per RBI guidelines. For loans above Rs.1 lakh: 10% (minimum).
    • Example:
      • If a poultry business is to be setup with a total investment of Rs.10 lakhs, then the Entrepreneurs contribution or investment must be at least Rs. 1 lakh.
  • Back ended capital subsidy – 25% of outlay (33.33 % for SC/ST farmers and NE states including Sikkim)
    • Explanation:
      • In a back ended capital subsidy scheme, the Entrepreneur would have to avail and bank loan and pay the installments due.
      • The final loan installments equal to 25% of the total investment amount would be adjusted as back ended capital subsidy.
  • Effective bank loan (excluding eligible subsidy as above) – balance portion, minimum 40% of outlay
    • Explanation:
      • Bank loan must be obtained for a minimum of 40% of the total project cost to avail subsidy.
      • Therefore, if the total project is Rs.10 lakhs, then the bank loan component must be at least Rs.4 lakhs.

A very helpful and illustrative way of showing how the expectations of a borrower in a poultry farming bank loan agreement interact with government subsidised payments.

Good job, Indiafilings.com!

Back to you…

Now, back to evaluating the benefit of a government subsidised poultry farm loan:

Whilst a subsidised loan to start your layer or broiler farm may indeed seem a preferable method of getting your enterprise off the ground…

Again, why not ask yourself the question…

If you are able to qualify for receiving such financial assistance from both a commercial bank as well as the government…

And will agree to wait between 5-7 years of repaying your poultry farm loan in full…

Whilst bearing the risk of losing your underlying capital assets of land and buildings…

And only at the length, after the course of 5-7 years of repayment in full, receive the benefit of the subsidy…

Why don’t you…

Start your poultry farm at a more modest level within your means…

Growing the business organically from your own personal finances & hard work…

Keeping all the profitable benefits produced by the enterprise…

And not running the risk of losing capital assets should things not go according to plan?

Our conclusion on poultry farm loans…

I know…

The sober talk of living within one’s means might be a far cry away from what you were thinking before reading this guide…

But, you must admit…

It is worth asking the question:-

What’s better?…

Growing a 1,000 bird farm steadily and organically for 5-7 years to 35,000 on your own steam without any binding agreements or risk of total calamity…

Or,

Getting the keys to a 20,000 bird poultry farm leveraged to the eyeballs and with only the smallest margin for error available – and the pending seizure of asset repossession hanging over your head whilst you slog away everyday at a venture – the promised profits of which are already levied against by lenders…

What’s really in it for you?

If you want our advice…

  • stay debt free
  • work hard
  • grow slow
  • giving value being better than receiving

Your thoughts…

Feel free to comment below.

Filed Under: Poultry Farming

Temi Cole
Mr. Temi Cole
🥇Author, The Big Book Project

Thanks for visiting my website.
"Let's make poultry profitable together!"
Begin by becoming a subscriber to my
newsletter, then when you're ready, join my interactive online course. Also, if you want me to help review & build your investment plans let's meet. Until then, stick around and enjoy this site - in which you'll find 300+ learning resources inc. articles, content hubs, sample plans, data sets, calculators and templates. Take a look around and enjoy the conversation..

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Cost Of Rearing Layers or Broilers (Complete Analysis: Any Flock Size)

Last updated on November 15, 2021 by Temi Cole 7 Comments

🥇Download The eBook

There’s a now pro way of looking at your cost of rearing layers or broilers that could SERIOUSLY help you smash those ROI targets.

I call it:

(“Econo-Poultry Technique.”)

I recently refined this strategy and packaged it in the new version of our in-house poultry consultancy software: Poultry Project Reporter 2.0

And in today’s discussion on the economics of raising chicken either for meat or eggs, I’ll share with you exactly how I did it (and step-by-step).

[Can’t read it all now? Download the PDF, by clicking on the orange button above.]

Opportunity Cost

Opportunity cost is, without doubt, the BIGGEST hidden cost in starting a poultry farming business.

When calculating the potential return on your poultry farm investment,

You’ve probably not accounted for opportunity cost.

(If you haven’t, you’re not alone.

In fact, when I posted this premium newsletter on ‘opportunity cost’ to my email subscribers recently, I received a HUGE response. )

99.9% of small & medium-sized business owners totally ignore this iceberg of ship sinker.

Before my brief experience of working for a business broker, I didn’t really have opportunity cost on my radar either.

But things changed when I got schooled on this critical ROI planning technicality.

What is opportunity cost?

If you’re new to the phrase,

Opportunity cost is the very real and tangible (yet indirect) cost of having your money, time and resources tied up in an investment…

…when you could have ploughed that potential elsewhere.

It’s not to breed doublemindedness and indecision.

Far from it.

It’s actually a way of shoring up your confidence in the decision.

Here’s how…

In assessing the opportunity cost of starting your poultry farm you perform what professional project managers call:

Alternatives analysis.

In this short paper exercise, you literally compare in a head-to-head fashion the future prospects of alternative investments you might choose instead…

…against the projected financial benefits of running your broiler or layer poultry farm.

A short story

Beginning…

Let’s say,

That you calculate that your 1,000 layer flock would bring you in $11,000 EBITDA (net profit) per annum in egg sales alone.

Over 6 years (with a 1st-year climb to reach peak performance) you could expect your layer poultry farm to net you $54,000.

But the business, according to your figures, might cost you $20,000 start-up investment.

The net benefit over 6 years would then be $34,000 for running the poultry project.

Middle…

Now, at the same time as planning your poultry farming business,

You get an offer from a friend to buy an online business.

It will cost you $12,000 and on the books, it currently generates $333.00 per month (it is being sold to you for a multiplier of 36 times the monthly revenue.)

The web business has a lean cost model and $300 of the total revenue figure is net (take-home) profit.

Over 6 years, this venture would NET you ($300*72 months):

$21,600.

The other fact to account for is your time involvement.

The web business runs on 2 hours per week commitment.

Your poultry business would require perhaps 25hrs+.

The cost in wages or time expense over 6 years would be around $50,000.

Calculating opportunity cost

The opportunity cost of you starting the poultry farm would be ($21,600 + $50,000) – $34,000 = – $37,600

In other words, by this crude estimation, you would be $37,60o worse off for choosing the layer business.

Not so fast!

But like I said this is a rather crude view,

What about:

  • your plans to rapidly scale the layer operation
  • manure sales
  • spent hen sales
  • money saved on household expense on eggs and culled hen chicken meat
  • hiring out your egg packing equipment to other local farms

If from these points alone, you estimate an additional benefit of, say $45,000 over the next 6 years.

Your opportunity cost works out to be:

($21,600 + $50,000) – ($34,000 + $45,000) = +$7,400

i.e. You’ll be $7,400 better off in poultry.

(Not to mention – the lifestyle benefits of being in agribusiness.)

Poultry Economics

The poultry farming business is constrained or defined by some pretty fixed parameters.

These factors have their own relationship to the costs involved in raising the birds.

Here are some examples:

Broiler vs. Layer Production Cycle

Broiler meat chicken typically in commercial rearing take somewhere between 6-7 weeks to reach marketable weight.

The equivalent optimal time frame for rearing layer chicken is about 72 weeks in commercial farms.

The point at which the cycle hits the endpoint is called Break Even.

In other words,

If you keep commercial layer birds any longer than the point of break-even (~72 weeks generally speaking) then you begin losing money to keep them.

(i.e. the cost of rearing them exceeds the revenue gained from egg sales.)

The same applies to commercial broiler chicken.

Keeping them beyond 6-7 weeks becomes loss-making. The direct cost to keep them starts to overshadow the sales revenue from selling the birds.

The Hatching Eggs, Day Old Chick & Pullet Race

These three options for starting poultry production are like choosing lanes before a 200m race.

Each has its own cost advantages and disadvantages.

(They all amount to the same distance – but your preference is simply based on how you see things.)

Here’s how they line up:

Hatching your own

With both broiler and layer farming, you can choose to hatch your own chicks to raise.

This is starting on the inside lane.

You seem further away from the end than the other lanes at the start, but it’s an optical illusion.

Yes, you run the costs of buying the fertilized eggs and incubating them until the successful ones hatch.

But you save on the cost of paying for a day old chick or even a pullet (if you run a layer farm).

Sellers of birds make back their rearing costs

As you can imagine sellers of day-old chicks and pullets charge much more for these than fertilised eggs.

They recoup their costs of rearing the birds by charging a price that covers their expenses,

PLUS gives them a healthy margin of profit.

So, going back to the sprint race analogy,

Buying day-old chicks for your broiler or layer farm is like taking up the middle lane.

And if you produce eggs, buying pullets is the outside lane.

The long and short of where you start off

Basically, each course runs the same length.

But because of the offset difference from the lane orientation,

The runners start at different positions on the track which at the beginning might seem like some are at advantage whilst others are at disadvantage.

But it all adds up to the same at the end.

“And the medal goes to…”

The key is not caring where you start, but mentally blocking out all distractions and running YOUR best race.

Bird Development Stages

When calculating the costs of raising chicken,

You’ve should also account for the constant flux of input volume (amount) and velocity (speed) throughout their growth stages.

Plus, the differing nutritional demand of birds at different ages.

The combination of factors leads to fluctuating cost burden.

But this is a slightly simplistic view of things.

Because with a muli-flock model – these changes are smoothed out by the layering of needs.

One flock’s needs insulating against the farm’s exposure the needs of another…in a staggered fashion.

This brings us on to…

Inputs (Direct costs)

These are your classic direct costs or the cost of goods sold (COGS).

Investopedia classifies these as being:

“Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company.

This amount includes the cost of the materials and labour directly used to create the good.”

In the sense of your poultry farm,

These are relatively easy to figure out…

To produce a table bird or a table egg, your need:

  • a bird (either from a fertilized egg, day-old chick or pullet)
  • feed & nutritional supplements/additives
  • water

(Depending on your model of production, you could also include within this cost of vet care/meds etc.)

Now, let’s examine these costs…

Bird (Egg i.e. hatch your own, DoC, PoL)

As I said earlier,

The cost of acquiring each bird is like choosing your lane to run in – if you think of poultry farming like a race.

Let’s look at some real example costs,

And how this choice of start point will affect your farm’s cost model.

These are some example prices from hatcheries in the United States:

  • Hatching egg cost = $2.50
  • Day-old chick = $7.50
  • Point of lay (PoL) hen = $22.00

As percentages of the point of lay cost, here’s how they line up:

  • Day-old chick = 34% cost of PoL
  • Hatching egg = 11% cost of PoL

And if we line up hatching egg cost vs. day old chick cost, we get:

  • Hatching egg = 33% cost of day-old chick

Whilst these numbers by themselves don’t tell us much,

If we look at them in the light of production and yield we learn a little more.

Egg-laying

Peak egg production (according to the HyLine Commercial Brown management guide) occurs at about week 22-23.

At this point, commercial strain layer bird, like the HyLine Commercial Brown should achieve a hen-day egg production of ~90%.

This is the part every layer farmer looks toward,

Because the birds begin earning back.

Before then, your farm bears the brunt of having to fund the rearing without return.

The longer the delay to peak laying…

…the longer your farm’s delay to earning back (recouping) the cost of pre-lay rearing.

Broiler meat birds

Conventional broiler birds are reared for 6-7 weeks and then marketed.

There isn’t a pullet equivalent for broiler farming.

At maturity, the bird itself is harvested, and so all gains must have been made beforehand.

This leaves only hatching eggs or day-old chick as viable start points for broiler farming.

Again, hatching eggs costing about a third of the price of a day-old chick, typically.

(Sellers of birds, rather than eggs, passing on the cost of rearing to their customers.)

Feed Consumption

Broilers

According to the Broiler Management Guide written by Livestock Feed  Ltd.,

The average conventional broiler breed bird will consume approximately 5.3kg in 6-7 weeks of rearing.

Estimating the cost of feed across the entire rearing period isn’t directly linear (straight forward).

At each stage of growth:

  • brooder
  • grower
  • finisher

…optimal growth yield is achieved by feeding birds with their appropriately formulated age-related feed ration.

Each type of feed is priced slightly differently on the basis of a different balance of ingredients.

But taking an average, in Nigeria broiler feed could fetch for ₦240.00 per kg.

So the equivalent cost of feeding a broiler bird from day one to week 6-7 is roughly speaking:

₦1272.00

Layers

Again the HyLine performance sell sheet indicates that their layer strain, Commercial Brown hens, consume:

~49kg of feed in 72 weeks.

The equivalent feed cost to rear layers will be ₦17,280.00

By comparison, the cost of feeding layer hens through a full production cycle is:

…13.5 times more than rearing a broiler bird (through its equivalent production cycle of 6-7 weeks).

In context

But we can never just look at cost in isolation.

The cost has always got to be viewed in the light of ROI to assist in strategic decision making.

Just think,

An average layer is likely to lay some 330 eggs in the space of 72 weeks, from a one-day-old starting point.

At an average price of 12c ($0.12) per egg,

Each layer hen is scheduled to generate some $39.60 over the course of its commercial lifetime.

By comparison, broiler chicken might be sold for $4.7 ($1.62 x 2.9kg per bird).

Now, put this in the context of your previously cost of feeding broiler or layer birds and you can quickly arrive at a profitable conclusion.

Other Direct Costs

Aside from the principal direct costs (as I call them), being:

  • cost of bird
  • feed cost

There are other costs associated with production in broiler and layer farms.

Namely:

  • labour
  • vet fees

To factor these in, we apply two different calculations.

Labour is calculated at:

  • an hourly wage (multiplied by)
  • by the number of staff members (multiplied by)
  • the number of hours worked within the time period

The product of this equation is a simple wage bill.

For vet and med fees, I apply a flat fee per bird. The total bill absorbed equally by each member of the flock.

This method is called absorption costing.

(A neat way of accountants spreading overhead costs across products and services sold.)

When you use this method you end up with a useful yardstick for estimating vet/meds cost per bird.

You simply calculate a flat fee, which can then be multiplied by the heads of the flock.

But what about one-off costs?

One-Off Capital

Starting a poultry farm typically involves some one-off costs too.

These are usually asset purchases.

Items like:

  • land
  • building construction
  • equipment
  • vehicles

…are bought once and will be used repeatedly until the end of their useful life.

This brings us on to…

Depreciation

Most physical assets need replacing or deep restoration after some time.

This cost is a very real deduction from your business budget.

And in most cases unavoidable and entirely expected.

Plan ahead.

In common business accounting practice,

The funds separated for replacing a physical asset when it becomes spent is called depreciation.

Proactively, your poultry farming business should include depreciation within your income statement as an expense.

You’ll want to plan for this expense, otherwise, if you overlook it, you’ll be caught off-guard when you least expect it.

Without ringfencing money for this,

Say, if your layer farm had to replace your delivery van after 6 years of continual use,

Coming up with say, R200,000 (South African Rand) on the spot could be difficult.

(Depreciation to the rescue.)

Working Capital

When starting a poultry farm,

You’re going to need to ‘prime the pump’ before you generate sustainable cash flow.

So, in the first instance – at least for the first year of trade – you need to fund your own operating expenses.

Buying:

  • birds
  • feed
  • rent/mortgage
  • transport costs

etc. will have to be financed with cash either from your own supply or from external investment.

This is known collectively as working capital.

In other words,

The money you need to run the operations until it becomes sustainable.

For example,

If you calculated that running a 30,000 layer egg production farm in the Philippines would cost you ₱14,063,140.00 in bird feed for the 1st year,

+ ₱600,000.00 in chick costs for your 1st 30,000 birds in 3 separate batches.

The working capital for year 1 would therefore be these two figures (₱14,063,140.00 + ₱600,000.00),

PLUS other direct costs – like labour etc.

Then lastly, you’d add the overheads (indirect costs) on top…

Overheads (Indirect costs)

These are a bit like what they sound like.

Costs that will hang over your head whether you produce or not.

Costs like land rent, for example.

They are not directly related to production,

But, granted, without rent paid and the farm occupation legitimate you simply cannot run a successful poultry farm.

So overheads can be really important costs.

With calculating overheads, there could be different approaches for handling each item,

But the bottom line is a grand total of indirect costs of the poultry farm.

Now, onto funding…

Borrowings

Poultry farming ventures are usually either self-funded or financed on borrowings.

Actually, poultry is one of the few livestock-related agri ventures that can be started VERY small and scale quickly.

Zero-debt is great because it’s lean.

(Less expense.)

Loan repayments are an unavoidable business expense, where you have debt.

(And so, debt horrendously undercuts your profits.)

For example,

I recently came across a PDF project report of a 20,000 layer farm published by the West Bengal Poultry Federation.

In the loan statement, they published a loan requirement of 127 Lacs.

This got me thinking…

…How much would the repayment on a loan like that be?

I fired up Poultry Project Reporter software – and only a few minutes later…

A loan of 127 Lacs to finance a 20,000 layer farm start-up at 6% interest would mean Rs.210,475.68 monthly repayment over 72 months (6 years).

This being taken directly out of your bottom line, whether things are going to plan or not is a steep start.

(Ouch.)

Middleman/Intermediary inc. FX or commission

Just like finance, a common thought is that you need middlemen to make a market tick.

Whilst they do work to aggregate transactional opportunity,

In other words – put people together who might trade (buy and sell),

Their involvement is not essential.

Much like any part of the industry which performs a service, but is non-essential:

Middlemen = COST.

Sales commission is the reward of their labour.

A slice of the action.

This percentage deduction is a business cost and should be accounted for in the overall cost of getting the product to the consumer.

Also, if you import the chicks, for example, a very real cost is foreign currency exchange (or FX).

In most cases, your bank will deal with the exchange.

But having worked in a corporate FX brokerage some years ago, I can confidently tell you that bank FX charges include some serious amounts of spread (profit).

To the tune of several per cent in most cases.

Brokerages can shave cost in this area, but you always need to walk into transactions with your eyes wide open.

Losing 5%, for example, on every trade to buy birds, feed etc. takes a significant amount of your take-home pay straight out of your pocket.

Inflation

Another secret cost threatening your poultry farming profits is inflation.

(The continually increasing cost of living – worldwide.)

This is one of the BIG costs to discount your poultry farm ROI projections by.

If you don’t tune down your expected earnings by the effects of inflation,

Then you end up with an INFLATED expectation on your future broiler or layer earnings.

This only leads to disappointment.

So always, always remember to discount poultry cash flow projections for:

a) opportunity cost, and;

b) the cost of inflation

In fact,

That’s EXACTLY why I built in a discounted cash flow feature into the Poultry Project Reporter software, that automatically adjusts your future expected cash flows by a set percentage.

For example,

To add the cost of inflation if you were planning a egg production farm in Uganda (based on 2020 figures),

You’d simply type into the PDF fillable web form ‘4.2’ (to represent the official Ugandan national inflation figure for 2020, which was up 45.57 % from 2019)

…the software will do ALL the rest and give you a PDF report of your Uganda poultry farm cash flow for 6 years,

Adjusted to inflation, of course.

No need for messy manual calculations.

All done for you.

Quick Percentages

Now,

That’s enough of the theory.

In this section,

I want to throw you some quick cost percentages that you might use to guide your own poultry farm cost calculations.

Here are the percentages (based on environmentally-controlled shed rearing conditions):

35,000 bird broiler farming cost analysis

(Analysis based on sample data published by The National Bank of Pakistan)

Roughly speaking, a project of this size and nature would have SIMILAR benchmark costs.

But I must say it again, this is ROUGHLY speaking.

There’s no way that you could rely on these exact numbers for your cost plan.

If you think about it, there are just too many variables involved:

  • where they sourced their prices from
  • the state of the economy at the time or research
  • availability of exact match items
  • unique features of his project
  • strategic preferences of the management team

…this list goes on.

So, the purpose of these percentages is to give you a ‘real-life’ feel of what a poultry project cost line up looks like.

Cost of comparative broiler systems in the Netherlands

I recently found this study on the “Economics of broiler production systems in the Netherlands” by Wageningen University & Research.

It’s a great insight into how your choice of broiler farming system directly influences your costs.

The four broiler systems compared within the study are:

  • Conventional: fast-growing broiler and maximum density 42 kg/m2 poultry house.
  • Dutch Retail Broiler (DRB): slower-growing broiler and maximum 38 kg/m2 and enrichment with straw
    bales.
  • Better Life one Star (BLS): slower-growing broiler (slaughter age minimum 56 days), maximum 25 kg/m2
    and a covered outdoor area.
  • Organic: slower-growing broiler (slaughter age minimum 70 days), maximum 21 kg/m2 and access
    to an outdoor area.

Whilst you are probably familiar with the potential consumer health benefits associated with organic & free-range poultry farming over congenial rearing,

You may not have much insight into how the operational costs differ.

And WHY they differ?

Here’s a breakdown:

Characteristics of the broiler systems

Comparing the Characteristics of Broiler Farming Systems in Netherlands

The criteria above will help you better understand how each of the poultry systems works.

Technological factors and parameters

Here you see the operational differences between the 4 broiler systems.

The further you move away from conventional broiler farming towards organic, we see:

  • longer growing periods
  • lower mortality
  • higher feed conversion
  • more space is given to flocks of lower headcount
  • longer empty periods
  • fewer production cycles

Generally, decreasing operational efficiency for the sake of passing on product quality benefits.

Variable costs comparison of broiler systems

Variable costs of broiler farming systems in the Netherlands

As a broad brushstroke statement,

We could summarise by saying – better product quality means higher direct costs.

Production cost comparison of broiler systems

Production cost comparison between broiler farming systems in the Netherlands

Better broiler product quality and consumer nutritional benefits (with free-range and organic methods) come at the cost of the producer.

They generally have:

  • Increased labour
  • More fixed cost (overheads)
  • Higher ‘non-feed, non-chick’ related variable cost of goods sold
  • More expensive chicks
  • Higher feed costs

Here’s why…

Increased labour

“…higher labour input due to a higher surface area per bird and extra labour for providing grain and straw bales.”

Organic and free-range (DRB, BLS & Organic) workers have to cover more area and have much more hands-on rearing duty than with environmentally controlled conventional farming methods.

More fixed cost (overheads)

“…the density is lower the costs per m2 poultry house have to be divided by a lower number of produced broilers per year. ”

“For free-range systems the fixed costs include the costs of land and fencing. The fixed costs increase as the growing period of the broilers is longer.”

Higher welfare, better product quality systems (DRB, BLS & Organic) cost more in general overheads, labour and capital asset expense than conventional systems.

More expensive chicks

“Day-old chicks of slow-growing breeds are more expensive than conventional breeds”

“For organic, the costs are extra high because of an extra vaccination in the hatchery.”

A price premium attached to slow-grow day-old chicks and additional vaccinations at the hatchery adds yet more cost to the higher welfare models (DRB, BLS & Organic).

Higher feed cost

Feed costs of broiler farming systems in the Netherlands

We see a gradual feed cost increase from conventional to free-range (DRB & BLS) as the rearing cycle increases from 41 days to 56 days.

The longer rearing cycle carrying a higher feed consumption.

The largest increase, however, is seen when we switch to organic practices where we witness an almost 300% leap in feed cost.

This is due to a combination of higher feed costs for organic ingredients and also a rearing cycle of 75 growing days.

BONUS TIPs

And now, a couple of pointers to help you produce some really ROBUST cost projections for your poultry farming project.

RFQs

Gathering together supplier proposals and price quotes can be quite a chore.

It’s repetitive, detailed and time-consuming.

This is where a useful template (or proforma) would be worth its weight in gold.

Especially, one that was easily downloaded in PDF format.

Well, I’ve got one better than that for you…

How about a purpose-made PDF fillable web form that:

  • calculates…
  • formats…
  • designs…
  • publishes…
  • auto-downloads as PDF…

…professional standard RFQ/RFP (request for quote/proposal) documents?

Click here to use it now (premium subscribers only).

Sensitivity Analysis

When putting together feasibility studies or project reports, you’ll want to put your mind at rest with some what-if scenarios.

The kind that help you report on outcomes when critical conditions change.

(…especially changes in costs, like feed or chicks.)

For such planning exercises, I recommend using sensitivity analysis:

Simply, you run side-by-side profit and ROI calculations, but with each attempt, you change a cost value.

For example,

I can use Poultry Project Reporter software to test my farm’s profit sensitivity to…

…say, a feed price increase of 25%, from ₱.26.00 to ₱32.50…

All I have to do is type in my new feed cost,

And now I see the gross profit contribution (over 72 weeks of rearing) of each egg-laying hen change from:

₱591.86

…to…

₱273.75

My next step will be to see how my operational profit lines up once all overheads are absorbed into that figure.

Will I still be in profit?

Perhaps that’s for another article.

Now, over to you…

Are you currently calculating the cost of rearing poultry?

Have you experience of rearing broilers or layers?

Do you think I missed something?

Either way, I’d be interested to hear from you.

Leave a comment below.

Filed Under: Poultry Farming, AgriBusiness

Temi Cole
Mr. Temi Cole
🥇Author, The Big Book Project

Thanks for visiting my website.
"Let's make poultry profitable together!"
Begin by becoming a subscriber to my
newsletter, then when you're ready, join my interactive online course. Also, if you want me to help review & build your investment plans let's meet. Until then, stick around and enjoy this site - in which you'll find 300+ learning resources inc. articles, content hubs, sample plans, data sets, calculators and templates. Take a look around and enjoy the conversation..

My Story Start Here Free eBook LinkedIn

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Temi Cole
Mr. Temi Cole
Author, The Big Book Project

Thanks for visiting my website.
"Let's make poultry profitable together!"
Begin by becoming a subscriber to my investor newsletter, online courses and consulting . Within this site you'll find 300+ learning resources inc. articles, content hubs, sample plans, data sets, calculators and templates. Take a look around and enjoy the conversation..

My Story Start Here Free eBook

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