The Poultry Entrepreneur Blog

Example designs of layer and broiler houses from the Philippines

This is a list of poultry farms in the Philippines and their poultry house designs – complete with interior and exterior photos.

I’ve taken a selection of poultry house designs from a variety of farms in the Philippines, showcasing their unique:

• land and site
• materials
• sizes
• systems
• operational use

…and on different types of land, locations just for your interest.

Why?

My hope is they will help you make successful decisions on how to house the flocks on your own farm.

These are only examples and not an exhaustive list by any means.

Rather think of this as a photo scrapbook of example poultry house designs from across the Philippines – from REAL FARMS.

I tried to make them as varied as possible so to help small scale to large commercial start-ups.

(Hope this helps you start up your poultry farm in the Philippines.)

Examples

1. JGR Poultry Farm: Bayan ng Santa Fe, 6047 Lalawigan ng Cebu, Philippines. (LINK)

2. Viduelle Chicken House: Metro Loft Xavier Condominium, 38 Gen. Juan Gutierez, San Juan, 1502 Metro Manila, Philippines. (LINK)

3. Fermi Farm – Free Range Chicken:  Unnamed Road, Pola, Oriental Mindoro, Philippines. (LINK)

4. Cebu Free Range Chicken Farm: Rafael Rabaya Rd, Talisay, 6045 Cebu, Philippines. (LINK)

 

 

5. KLH Poultry Farm: ANUS ROAD, San Jose, 4227 Batangas, Philippines. (LINK)

6. ENE Poultry Farm: Brgy. Anus Rd, San Jose, Batangas, Philippines. (LINK)

7. JGV FARM SlTIO PULO: San Jose, Batangas, Philippines. (LINK)

Now, over to you…

Are you planning to develop and construct your own poultry house design in the Philippines?

Are you extending your poultry farm capacity and are looking for a few ideas or house plans?

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

Leave me a comment below.

This is a very DETAILED tutorial for how to start a poultry farm in The Philippines in 2021.

In this new tutorial you’ll learn, step-by-step, how to:

1. Decide if it will be profitable
2. Calculate necessary capital
3. Choose: egg vs. meat
4. Build the best house
5. Optimize production
6. Keep your flock healthy
7. Find buyers for your product

This guide is just for you.

Contents

• 1. Market Research
• FAO Agricultural Outlook 2019 -2028
• Example Philippines Poultry Farmer Success Story
• PSA – Philippines Statistics Authority
• Industry press
• Philippines poultry journalist contact
• Philippines poultry farming groups
• Philippines chicken trends
• Philippines Poultry Consumption
• Philippines Poultry Production
• Philippines Import duties
• Philippines poultry value chain
• Major poultry farms in the Philippines
• Good husbandry practices for Philippines poultry farmers
• Poultry farming advice in social media
• 2. Choose your model
• 3. Choose your market
• 4. Find out what consumers want
• 5. Get long term customers
• 6. Get trade sales
• 7. Sell direct to the public
• 8. Direct selling
• 9. Proximity to market
• 10. Poultry houses in the Philippines
• 12. Poultry farm operational layout and design in the Philippines
• 13. Registering your poultry farm business
• 14. Training
• 15. Type
• 17. Rearing system
• 18. Yield & performance
• 19. Production modelling
• 20. Secondary income streams
• 21. Estimating cost
• 22. Labour
• 23. Pricing and value proposition
• 24. Marketing
• 25. Estimating sales and breakeven
• 26. Funding
• 27. Growth and diversification
• 28. Advice
• Now, over to you…

1. Market Research

The Philippines Poultry Industry Status

Your first step is reading up on the status of the poultry industry in the Philippines.

First stop, getting your hands on the official industry statistics.

(This is why I wrote this article)

Philippines: Poultry Farming Industry Statistics (Updated for 2021)

I plan on updating it 4 times each year with EVEN more useful market data…

…all in an effort to help you grow your poultry farm business.

Also,

For up-to-date news, views and commercial issues in the Philippines poultry world,

This archive of articles will help you learn quickly:

https://www.thepoultrysite.com/country/PH

FAO Agricultural Outlook 2019 -2028

The UN Food and Agriculture Organisation produce a global report on farming.

It looks forward about 10 years and will give you an idea of what the expert view is on future trends.

See how the Philippines’ poultry trade lines up with other Asian economies…

“Production of eggs, pork and poultry is projected to expand annually by 1.3% in Paraguay,
2.1% in Peru, and 1.9% in Viet Nam, 2.2% in Indonesia and 2.0% in the Philippines.”

“[Increasing meat production – ] Philippines and Viet Nam – due to rapidly increasing domestic demand“

OECD-FAO Agricultrual Outlook 2019 – 2028

Example Philippines Poultry Farmer Success Story

Isn’t it great when people a few steps ahead take the time to share (and give back)?

Looking no further than these two examples, we prove that it is possible for non-farmers succeed, starting from scratch.

Meet Emerson Siscar, IT professional turned proprietor of Batangas Free Range Chicken…

Photo credit: © Gregg Yan

https://www.thepoultrysite.com/articles/why-free-range-is-booming-in-the-philippines

And, introducing Dwight Tamayo – career nurse and now, poultry farmer and social media mogul:

https://www.agriculture.com.ph/2020/06/21/masbate-poultry-farmer-is-also-an-internet-influencer/

 

PSA – Philippines Statistics Authority

The Philippines Statistics Authority (PSA) is the official office of national statistics for the Philippines.

Their job is to “…collect, compile, analyse and publish statistical information on economic, social, demographic, political affairs and general affairs of the people of the Philippines.” (Source)

And, yes – they have ALL the agri data too, of course, this includes poultry and eggs.

(Philippines Statistics Authority)

You’ll find their website here: https://psa.gov.ph/

They also have a Twitter account, which is an ideal method for being first when they release something new:

Visit the PSA Twitter profile (click here)

Industry press

The Philippines poultry industry is widely covered by the press.

And this presents a treasure trove of information and insight on what’s current and what’s hot…

https://business.inquirer.net/319142/price-freeze-on-pork-poultry-stays-until-april-8

Philippines poultry journalist contact

An advanced tip for digging deep on who has the latest and greatest scoop on things poultry in the Philippines, 

Try what I call: Meet A Journo.

It’s three-step and it can lead to golden PR opportunities for your poultry farming business.

1. Find a quality, high-profile poultry farming article on the Philippines.
2. Take note of the journalist who authored the piece.
3. Search for their Twitter account by typing: ‘[journalist’s name] Twitter‘ into Google.

Get notified every time they publish something new.

(Plus, get their attention by sharing with them something they might value.)

For example,

1. This article on free range chicken farming in the Philippines was published on The Poultry Site
2. It was written by Gregg Yan, an environmentalist who used to lead communications for the World Wildlife Fund.
3. Typing into Google Search: ‘Gregg Yan Twitter‘ we find Gregg’s Twitter profile (why not get in touch?)
   • https://twitter.com/greggyan1?lang=en

Philippines poultry farming groups

There are quite a few QUALITY agribusiness advice groups for the Philippines online…and Facebook is the primary source.

Many of them have a poultry category. Yet, quite a few are actually specialist poultry groups.

Here’s how you find them easily – 

Type this into Google Search:

intitle:’farming’ inurl:’facebook’ inurl:’groups’ philippines

Sign-up and give them a try.

Pro tip: before deciding whether its worth joining any particular group,

Here are some features to look out for to help you choose:

• Access:  Public or private
• About page group description
• Group history i.e. name and identity changes
• Activity: number of members and posts today
• Group rules

Once you’ve been briefed of these, you’ll know if a group holds value for you.

n.b. ALWAYS go for a group with lots of recent activity, so you don’t waste time posting into thin air.

Philippines chicken trends

Staying on trend in business always give you lots of room for grwoth.

After all,

Knowing what your customers want today and (are likely to want) tomorrow helps you keep your business in demand.

Want a way of finding out what poultry trends in the Philippines are taking off?

Use Google Trends.

It works very similarly to Google Search, you type in a phrase like:

‘Chicken‘

…and Google Trends literally tells you what’s trending in search right NOW.

For example,

Searches for Rhode Island Red chicken breed in the Philippines have gone up by 250% over the last 12 months.

Philippines Poultry Consumption

Poultry consumption is the demand for your farm’s supply.

Que: “How much chicken meat is eaten in the Philippines each year?“

Ans: “As of January 2020, almost two million metric tons of chicken meat was consumed in the Philippines [within the previous 12 months].” (Source)

“…thanks, but I have on more question…”

Que: “How many eggs are eaten in the Philippines?“

Ans: “Egg consumption per capita reached 4.58 kg in 2018 in Philippines, according to Faostat.” (Source)

Pro tip: the consumption of poultry produce (eggs and chicken meat) per country is quoted as per capita.

In other words, how much of each food is eaten by each person on average.

This is calculated by dividing the overall volume of food by the number of residents.

Philippines Poultry Production

As you can probably imagine,

The Philippines already produces a MASSIVE amount of chicken and eggs.

In fact, 

Statistics have it that “…the total volume of chicken production in [the Philippines during] 2019 was 1.93 million metric tons, liveweight.“

But don’t be discouraged,

In business, there is always room for improvement.

The are just so many different types of consumers out there…

…that you can never have enough producers.

This article on AgFishTech Portal, called Chicken Production – has a really useful list of common poultry breeds in the Philippines:

https://www.bar.gov.ph/index.php/agfishtech-home/livestock-poultry/216-poultry/1334-chicken-production

Philippines Import duties

As a soon-to-be poultry farmer in the Philippines, the news is…

…you’ve got internal competition, AND…

…foreign import competition too.

Recently, Quezon Rep. of the House Committee on Agriculture and Food – Mark Enverga, was quoted as saying:

“The poultry producers [in the Philippines] deserve to be heard and be assured that the government is doing its share to combat the problem arising from high levels of importation of poultry’s products, while we are experiencing an oversupply of broilers in the market, he added.” (Source)

The Philippines (just like any country) has its own internal Government targets and policies on imports.

Import duties or tariffs are often used as a means of artificially loading the costs of imported goods…to favour homegrown produce, by price benefit.

Here’s a couple of recent USEFUL articles to help you learn this topic:

https://kitinternational.net/noticia/574/philippines-cut-import-duties-and-should-import-400000-pork-tons

https://fnbreport.ph/features/agriculture/this-free-range-chicken-farms-18-year-formula-to-success-admin-20180823/

Philippines poultry value chain

Markets move by value.

Raw materials and inputs are harvested refined and honed to suit market demand and tastes.

It all happens step-by-step by a chain of events.

(Source)

Each contributor within the chain does ‘their bit’ to make the product that little bit more ready for consumption.

Critical to becoming a most valued participant in the chain…

…is knowing your place PLUS who exists both upstream and downstream of your farm.

Articles like this one will get you thinking collaboratively:

https://www.da.gov.ph/phs-egg-processing-capital-demonstrates-innovation-in-the-value-chain-approach/

Pro tip: type this into Google Search for more info on the people that make ‘poultry’ tick in the Philippines:

‘Philippines value chain’

Major poultry farms in the Philippines

When researching the marketplace for your poultry farming business plan,

It’s worth taking a good look at your market leaders for tips on success.

Analysing WHAT they do really well, HOW they do it and WHY…

…then consider how you could make that work for you.

Here’s a Dun & Bradstreet list of some of the biggest and best in the industry:

https://www.dnb.com/business-directory/company-information.poultry-egg-production.ph.html

Good husbandry practices for Philippines poultry farmers

Handling your flock well properly to better performance.

Birds are sensitive and respond favourably to the right care.

Whilst there is a universally accepted approach to poultry farming, each country has its own unique challenges.

Because of this, governments write their own best practice standards on raising chicken for eggs or meat.

Here are the Philippines’ national standards for broiler and layer husbandry (best practices)…

Download Now:

https://members.wto.org/crnattachments/2016/SPS/PHL/16_1747_00_e.pdf

Poultry farming advice in social media

Social media is a rich source of peer-to-peer advice.

Often what we need when we start new ventures is ‘an experienced viewpoint’ – to get us on the right rack.

This is where social listening comes in.

(The art of picking up the conversational thread on social media.)

And by far online the no.1 ‘most valuable’ place to listen in for poultry farming peer-led advice for the Philippines is:

Reddit. (Here are some useful threads to get you started.)

Take this one – Poultry farming with tunnel ventilated houses (quite an advanced level topic):

Poultry farming with Tunnel Ventilated houses
byu/2klude inphinvest

This is a classic poultry farming start-up enquiry from a beginner:

Question sa mga businessman
byu/onated2 inPhilippines

Here, the discussion is about a growing social trend of farm owners selling up in the Philippines:

Why are Filipinos leaving the farms?
byu/CorneliusTullius inPhilippines

Domestic farmers team up to appeal Governmental favour towards imported chicken:

Groups buck gov’t move to import chicken
byu/SEND_ME_UR_DRAMA inPhilippines

And finally, a question related to becoming a contract broiler grower in the Philippines:

The Chicken Business – Contract Growing
byu/killercats10 inPhilippines

Pro-tip: to find more of these useful threads type this phrase into Google Search:

‘poultry farming reddit inurl:’philippines’

2. Choose your model

Your first decision is choosing your business model.

What style of poultry enterprise do you want to have?

They all have their appeal, in a way, but the choice is definitely one of preference.

Here’s my list:

Independent

Go it alone – truly a DIY approach to starting a poultry business.

High risk/reward.

You take all the risk, but then again you don’t share any profits either (maximum reward). 

Pros – sovereignty to make your own decisions, greater earnings…

Cons – nothing ready-made for you, time and money spent ‘working things out’ already solved by established operators…

Co-Op

Join forces with other producers to magnify bargaining power in your market.

Also,

Benefit from shared economies of scale and efficiencies that would be otherwise lost as an independent.

Pros – lean on founders for the benefit of their experience and expertise, lower input costs

Cons – joint venture weaknesses, your produce in tied u pin forward obligations with the Co-Op 

Contract Poultry

Sign up to serve a ready-made poultry outfit that will supply your farm with optimal input,

As well as, buy 100% of your stock at the point of fulfilment.

Pros – everything but keeping the chickens is done for you

Cons – it’s not your business…your farm is really ‘owned’ by them (what they say goes), tournament pricing

Joint Venture Poultry

Innovative and works to mutual strengths.

One business feeds another one just where they both need it the most.

Pros – more focus on what you do best, shared collaborative insights

Cons – very fragile because success depends a lot on strategic alignment, can be costly to duplicate communications

Franchise

You buy the license to trade under the name of an existing and established poultry brand.

They provide you with reputational headstarts and a tried business model.

Pro – they give you a winning formula, lose no time dreaming up a brand etc.

Cons – still require HUGE effort to make ‘their way’ succeed for you, large capital outlay to recoup from ‘go’

Buy a poultry farm in the Philippines

Take on a going concern as is and steer it into increasing rounds of profit.

Pros – business is already trading, has some trading footprint already

Cons – can be VERY difficult to see if it is actually making money, independent valuation

3. Choose your market

Finding your niche in the poultry market is critical.

The goal is:

Moving away from the price wars of commodity trade,

And fitting in where your customers don’t care about price but want to award you with their vote of confidence.

How is it done?

Discover the need.

Investigate the crux problems of poultry buyers in A-Z scenarios and make a plan to serve the need.

This is PROFITABLE business planning.

For example,

This article talks of such an UNTAPPED poultry demand in the Philippines:

“There is a big potential niche market for native chickens that is waiting to be tapped.

We were talking with a consultant of a big chain of restaurants and he was bewailing the difficulty in sourcing native chickens that are more or less uniform in size and meat quality.”  (Source)

Which brings us on to…

4. Find out what consumers want

The key to starting a successful poultry business in the Philippines (or anywhere) is:

Finding out what customers want.

This drives transactions.

Customers pay for having their problem solved.

They don’t pay for ‘good’ or even ‘great’ products and services.

They want their itch scratched.

Get researching today.

Any store selling free range chicken and eggs?
byu/linux_n00by inPhilippines

Pro-tip: I can’t say it enough – Reddit is a gold mine of customer research and insider tips. Join r/Philippines.

5. Get long term customers

Customer lifetime value is BIG in marketing right now –

And the good news is that it is totally relevant to selling eggs and chicken meat in the Philippines.

The concept is really simple.

Going the long run with customers take more effort PLUS you need to invent genuine reasons to return,

BUT if type of relationship marketing is achieved, it equals MASSIVE ROI.

Just think it through:

The average citizen of the Philippines eats 13.7 kilograms per year,

So a family of 4 (2 adults and 2 children) might eat ~40kg of chicken per year

(…or 20 chicken per year / just under 2 a month / i.e. 1 chicken every 2 weeks).

At recent 2020 prices (Php 74.05 per kg),

You would make Php. 2,962.00 revenue in a year from one household alone.

@ a net profit margin of, say, 18% = you would earn…

• Php. 533.16 in take-home pay from that family alone in a year.

On the flipside,

Marketing for the short term gain of getting 10 new customers might win you:

10x Php.148.10 = Php.1481.00 in the 1st time sale (selling 2kg birds).

@ 18% net profit =

• Php.266.58 take-home pay.

So, the profit of KEEPING one household engaged to buy from you consistently for a year is:

100% more rewarding than getting 10 new customers.

FACT.

6. Get trade sales

Selling to business buyers has an appeal for poultry farmers. 

• Large volume transactions.
• Repeat business.
• Consistent cash flow.

But what does a trade buyer look like?

And does a new farmer really have a chance at attracting them?

This article, on Smallholdings for Sale, “How To Make a Profit Selling Produce To Restaurants From a Smallholding“

Reveals the results of a survey taken of 383 expert chefs across America.

They were asked various questions about their local produce buying habits.

One of the most encouraging take-home points was this:

When asked,

What is your preferred source of locally grown produce?

Here’s what they said…

81% of respondents said, “Direct from a farmer.”

Even more of a green light was this response to the question,

What would encourage you to increase the variety of locally produced purchases?

As competitive as the US agricultural produce market is, 

Roughly 1/3rd of the chefs said, they wished there to be more producers and growers to buy from.

7. Sell direct to the public

As well as trade sales, your poultry farm will benefit from a backbone of sales to households.

This article:

5 Qualities To Copy From Top Selling Produce At Farmers Markets – is packed with MANY practical and actionable pointers to take away for selling produce to the public successfully.

8. Direct selling

Direct selling is an art – and a very profitable one too.

It gives you a way of approaching people 1-to-1 and selling them that deal that they need and that you want.

In involves many of the least liked sales related activities, like:

• scripted phone-based cold calling
• writing sales letters
• door knocking

…which is really difficult to get right if you don’t know how.

BUT if you do, it can single handedly grow you a very viable poultry farming business.

In fact, 

So valuable is this skill,

That I recently decided to write up a 6,012 word Ultimate Guide to Direct Selling for Poultry Farmers for my premium newsletter subscribers.

It’s a step-by-step blueprint that led to me making 6-figure client revenues in my commercial sales career.

You can read my guide here.

9. Proximity to market

A big part of selling successfully is being available and consistent.

In other words, 

VISIBLE.

Not just on ‘market day’ either, 

But throughout the week.

However, not without an invitation of course.

As I said before, to close sales successfully you need to establish genuine reasons to return.

And having them, USE every one of them to maximize profit.

Go to market.

https://thebigbookproject.org/poultry-farming/project-report/location/market/

 

10. Poultry houses in the Philippines

Here is a couple of examples of poultry housing in the Philippines to help you visualise your own:

Brown&Free Eggville – Manolo Fortich, Bukidnon, Philippines

Bulacan Nueva Ecija Tarlac Farm Fresh Eggs – Riverside St., Bulihan, Malolos City, Bulacan (10,959.13 km)
3000 Malolos, Philippines

12. Poultry farm operational layout and design in the Philippines

To really understand the poultry business – you’ve really got to see it in action.

So, no better than a handful of videos to help you get the picture.

Here are my choice of VIDEOS showcasing poultry farms in the Philippines and the people that run them:

A day in the life of a poultry vet in a commercial, controlled-environment broiler farm in the Philippines:

A detailed presentation about the layer poultry business start-up by Dwight Tamayo (an experienced cage layer farmer in the Philippines):

An agribusiness introduction to free-range chicken farming in the Philippines:

A ‘how to manage native chicken in the Philippines’ tutorial:

Dwight again, showing you what he does every day as a layer egg farmer in the Philippines:

13. Registering your poultry farm business

Your poultry farming business will need licensing and registration with various Philippines governmental departments including the DA.

Here is a very neat summary of the types of official paperwork you will need:

https://businessdiary.com.ph/438/how-to-start-a-poultry-farm-business/

Also, there are government incentives that poultry farmers can register to benefit from like this one:

Selected farmers receive native breed, free-range chickens and feed from the DA:

“This after the Department of Agriculture (DA) in Central Visayas delivered and turned over to each of the farmers’ organizations some 50 pullets (young hen) and 10 cockerels (young rooster) of upgraded free-range chickens with two sacks of feeds under the Expanded Livestock and Poultry Production and Livelihood Project…” 

Offering your household more food security and additional income:

“In a statement on Friday, Dr. Zeam Voltaire Amper, DA-7 livestock program coordinator, said that this project would enable the farmer-household beneficiaries to produce their own food and have the opportunity to raise additional income for their families.”

14. Training

The humble agricultural bulletin is one of the oldest, yet GOLDEN, methods of learning farming.

Extension services like this one:

US DA Farmers’ Bulletins

…date back to 1889 and are STILL some of the most detailed farmer training manuals around.

There are many poultry examples, like:

Backyard Poultry Keeping

Are a great introduction to farming poultry on a small scale.

Pro-tip: for next level poultry business training & tools (AND to learn the most profitable strategies) – subscribe to receive my weekly, premium email newsletters & PDFs.

15. Type

Deciding on the type of poultry business to run can be difficult as a beginner.

Becoming familiar with “…what kind of farms exist and for what reasons…” grows your confidence to make the right choice.

Here’s a quick list to help you on your way:

1. Breeder: 
   • holds pure stock for the purpose of breeding specific lines of bird to meet commercial demand.
2. Hatchery:
   • hatches select breeds of birds and sell either eggs or day-old chicks to farmers.
3. Rearing:
   • raises day-old chicks through a variety of ages and sell live birds to farmers.
4. Layer egg farm:
   • rears specialist egg-laying birds, either from day-old chick or 16-18 week old (Point of Lay, PoL) for optimal performance i.e. most, high-quality eggs at a profit, and sells them 
5. Broiler meat farm: 
   • grows table meat birds taken from day-old chick up until they reach a marketable weight, usually 6-7 weeks, hence 45 days chicken – and sold 
6. Packer:
   • buys eggs wholesale from farmers and packages them for resale
7. Equipment vendor:
   • buys poultry farming equipment like feeders and drinkers from manufacturers and sells them on
8. Agent:
   • arranges deals to supply business buyers with wholesale eggs or chicken meat and takes a commission for his sales effort
9. Feed miller:
   • takes bear grain and other ingredients and mills them to produce poultry farm feed rations for layer and broiler farms
10. Native breeds: breed local birds and selling to niche buyers

Local chicken breeds can be very profitable to raise.

You can find some restaurant clients willing to pay premium prices for the right product.

This is a comprehensive guide to the most popular native breeds of chicken in the Philippines:

https://www.thepoultrysite.com/articles/farming-heritage-chicken-breeds-of-the-philippines

17. Rearing system

There are four main styles of poultry farm rearing in the Philippines:

Organic – chickens are raised on ample enough grounds to run this  

Free poultry – birds openly graze and forage out in the open all-day 

Deep litter – birds grow on the litter covered floor of the poultry house and stay indoor most (of all) of the time

Cages – birds grow or lay eggs whilst in cages throughout their entire lifetime on the farm

For a thorough breakdown of the pros vs. cons of poultry rearing systems, I recommend this post:

“How To Select a Good Poultry Housing System” 

18. Yield & performance

This is where the gears of your poultry business start to grind.

The yield metrics of poultry farming are all based on the performance of the individual bird.

Once you know what the capacity of each bird is – you then know what your business can do.

It sets a physical ceiling.

So, here are YOUR NUMBERS (I highly recommend you memorise them):

Broiler yield

Typically, commercial broiler meat chicken like the Cobb 500 strain:

• take 6 weeks to reach the marketable weight and size
• their weight at this age is approximately 2.952 kg
• consumes 5.348 kg of feed throughout the 6-7 week period
• 68.8% of the broiler’s carcass results in saleable meat (the rest is by-product)
• have an average mortality rate of 5%

Layer egg yield

Commercial egg-laying chicken like the HyLine Commercial Brown:

• become unprofitable at 72 weeks of age (after which they become spent)
• begin laying eggs at 18 weeks of age
• hit peak egg production of 92% hen-day egg production at about 22 weeks of age
• lay about 360 eggs each in their 72-week commercial laying cycle
• have a 92% survival rate throughout the rearing cycle
• peak egg weight during 72-week production is 65.5 g

19. Production modelling

Beyond the performance capacity of the individual bird, 

Your profits in poultry farming rest in engineering the optimal poultry production model.

What is this?

It’s basically taking the capacity of each bird and multiplying it until you get your desired output of eggs or meat.

Mathematical problem solving (with financial management accounting).

For example, 

When you buy a new batch of day-old layer chicks,

They need to be raised for 17 weeks before you can expect your 1st egg. 

Also, when a flock reaches 72 weeks of age they get culled.

In both cases, if this was your only flock – your business would have a pause in cash flow…

…whilst you wait for your new replacement flock to become productive i.e. 17 weeks.

What’s the answer to keeping your cash flow consistent?

Adopt a multiple-flock production model.

Pro-tip: I recommend subscribing to my premium email newsletter series (subscribers only), called Poultry Project Reporter.

(I publish every email as a PDF version in the archive.)

These are emails are the most deteiled deep dive analysis of common layer and broiler production systems. Including profit calculations and investment projections – like in the screenshot above.

Subscribe here.

20. Secondary income streams

Your main income as a poultry farmer will be earned either from meat or egg sales.

However, there is plenty of side income potential too.

For example,

Layer farmers can also earn from selling:

• manure for fertiliser
• spent hens 
• used feed bags (hessian)

Broiler farmers can also earn from selling:

• manure for fertiliser
• by-products e.g. feathers, blood, head, feet etc.
• used feed bags (hessian)

You can make, perhaps 10-12% of your primary poultry income in these kinds of supplementary sales.

21. Estimating cost

Accurate estimation of cost requires supplier quotes.

As it goes, suppliers are often shy (by nature) of publishing pricelists in the public domain.

You only have to look for poultry feed prices for the Philippines and you’ll see what I mean.

Rare sources like this video share footage of some real pricing for poultry feed, for example.

Aside from this, I came across a rare feed price list published by an agent,

A bit dated – but valuable for getting an idea of how feed pricing work (especially volume discounts):

(Source)

22. Labour

Poultry farming can be a very lean business model when it comes to labour.

Many families in the Philippines work the farm themselves with the help of the household.

A backyard poultry business plan like this one shows just how feasible it is to start small and grow with only household labour.

Beyond this, larger commercial operations require employed staff too.

Poultry stockmen are the industry staple. 

They are the eyes, ears, hands and feet of the operation…

…making sure every ounce of input gets converted into optimal output.

23. Pricing and value proposition

Don’t get sucked into thinking the cheapest chicken or eggs on the market attract the most sales.

It’s not so,

With a greater demonstration of value, price becomes of lesser importance (always) in buseinss.

In other words, 

People don’t mind paying more – when they see what is on offer being far in excess of the value of the cost.

This quote from an organic free-range farmer in the Philippines, says it all:

“Organic free-range chicken meat is a premium item, but production must always comply with strict standards,” explains Emer.

“Feeds can’t contain animal protein so we make a special mixture of corn, soy and vegetable pellets.

We don’t use antibiotics or growth hormones, so our brown broilers take a longer time to reach a live weight of 1.5kg to 2kg – about 75 days compared to the 28-day-old chickens produced by factory farms.

Still, our chickens retail for much more – up to 400 pesos or US$8 per kilogram compared with around 120 pesos or $2.5 for non-organic chicken, so the extra time, effort and love we give them pays dividends.

(Source)

24. Marketing

There are so many different ways to market your poultry products.

The internet is awash with so many practical guides to this.

So, 

Here’s what I did, I got…

STRATEGIC.

Marketing strategy (a step-by-step blueprint for marketing success),

Is the winning touch that every small business needs. Your poultry farm included.

The principles in this premium email newsletter are PROVEN for setting your poultry business to lead its market.

Build your winning marketing strategy today.

25. Estimating sales and breakeven

I recently wrote a series of detailed sales and profit analyses using Poultry Project Reporter software.

Having searched far and wide online – I can safely say there is nothing quite like the depth they go into.

I published them to help start-up poultry farmers understand…

…how to plan a PROFITABLE poultry business.

For example,

In the series, I illustrate in which week you can expect common broiler production models to start making a profit:

And also, when the overall break-even ROI point occurs:

(*Don’t let the currency put you off – the principles behind the examples are universal to any country.)

If you are planning a poultry farming business right now, I highly recommend downloading the PDF version of the series now.

You’ll find the broiler farm version here, AND the layer farming one here.

26. Funding

Funding enables the start-up process.

However, contrary to what most people think – getting finance is not mandatory.

In fact,

Debt from finance is harmful to profits and growth.

It puts you at a deficit from day one…giving you a much steeper mountain to climb ahead.

A question, I often get asked by my email subscribers is:

“Is it possible to start my poultry project as a backyard operation and scale it without borrowing?“

Here’s my answer every time:

“Poultry Farming Loan – Unmissable Reasons Why You Don’t Need One!”

27. Growth and diversification

Once you hit a formula that works for you in business – the natural next steps are:

Grow and/or diversify.

In other words,

• more
• different

The experience gained from your early years of trade will be invaluable for giving you a good sense of direction.

But with any type of change in business strategy always factor in the COST.

• Time to research
• Money in invest
• Losses whilst finding your feet

Yes, upscaling your operation can make sense if you see a profitable opening,

But being realistic about the cost will help you make better decisions.

28. Advice

Expert poultry business advice can make all the difference to the quality of your future earnings.

But detailed, yet affordable poultry advice can be quite hard to come by.

This is why I launched my premium subscription services earlier this year,

They include: 

• poultry business planning templates
• egg & chicken production calculations
• PDF sample plans and data
• premium newsletters

So, if you are thinking of starting a poultry farm, or have one already and want to grow your profits:

I recommend you subscribe today. 

PLUS,

I developed and released a web-based software for helping you write a winning poultry project proposal:

Poultry Project Reporter …

…it’s fastest and most flexible way to build your winning layer or broiler proposal.

It auto-calculates all your financial projections – without you doing any maths.

And, it helps you build profit scenarios to work out the most financially rewarding strategy for your business.

I recommend you use if you are planning your poultry business now.

Get the software here.

Now, over to you…

Are you starting a poultry farming business in the Philippines?

Or, are you just thinking things through?

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

Leave me a comment below.

---

Photo credit:

https://fnbreport.ph/features/agriculture/this-free-range-chicken-farms-18-year-formula-to-success-admin-20180823/

Introduction to 10,000 Broiler Farm Project Report

Hello,

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

Whilst there are many broiler farm project reports published online,

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

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

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

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

This is it!

A little hint…

P.S.

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

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

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

Why?

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

And it does just that.

It’s:

• accurate,
• quick,
• & easy

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

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

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

How I Put This Report Together

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

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

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

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

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

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

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

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

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

Assumptions

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

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

Indian Government Subsidies For Poultry Farming Projects

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

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

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

Who can apply?

• Farmers
• Entrepreneurs
• Non-Governmental Organisations
• Social Enterprises…and more

How they work

Subsidy eligibility is typically broken down by region.

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

All subsidies are paid back-ended.

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

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

How much you get

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

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

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

How much you need to fund

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

What you can spend the money on

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

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

Learn more about poultry farm loans and subsidies here.

A quick note on broiler housing

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

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

You can find more on alternative poultry house styles here.

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

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

TOTAL PROJECT COST

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

One-Off Capital
Poultry House Construction
	3,500,000
Civil Building Construction
	60,000
Other Construction
	400,000
Feeders
	105,000
Drinkers
	105,000
Cages
	0
Vehicles
	0
Equipment
	140,000
Utility Installations
	90,000
TOTAL: One-off Capital Cost
	4,400,000
Working Capital
Chicks
	2,940,000
Feed
	11,840,850
Labour
	522,000
Livestock Insurance
	91,350
Vet Fees
	91,350
Bird Processing Fees
	0
TOTAL: Expenses
	15,485,550
Overheads
Electricity
	145,000
Maintenance & Repairs
	50,000
Administrative Labour
	9,600
Marketing
	30,000
Contingency
	18,500
TOTAL: Overhead Cost
	253,100
TOTAL: Working Capital Cost
	15,738,650
Funding
Total Project Cost
	20,138,650
Margin Money
	3,020,797.5 (15%)
Bank Loan
	17,117,852.5

BROILER FEED COST

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

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

POULTRY FARM LOAN REPAYMENT SCHEDULE

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

Loan Metrics
Principal
	17,117,852.5
Interest Rate
	12
Effective Interest Rate
	0.01
Term (Years)
	6
Term (Months Converted)
	72
Instalment
	334,657.31
Interest 1
	171,178.53
Principal 1
	163,478.785
Balance 1
	16,954,373.72
Interest 2
	169,543.74
Principal 2
	165,113.57
Balance 2
	16,789,260.14
Interest 3
	167,892.6
Principal 3
	166,764.71
Balance 3
	16,622,495.43
Interest 4
	166,224.95
Principal 4
	168,432.36
Balance 4
	16,454,063.08
Interest 5
	164,540.63
Principal 5
	170,116.68
Balance 5
	16,283,946.4
Interest 6
	162,839.46
Principal 6
	171,817.85
Balance 6
	16,112,128.55
Interest 7
	161,121.29
Principal 7
	173,536.02
Balance 7
	15,938,592.53
Interest 8
	159,385.93
Principal 8
	175,271.38
Balance 8
	15,763,321.14
Interest 9
	157,633.21
Principal 9
	177,024.1
Balance 9
	15,586,297.04
Interest 10
	155,862.97
Principal 10
	178,794.34
Balance 10
	15,407,502.71
Interest 11
	154,075.03
Principal 11
	180,582.28
Balance 11
	15,226,920.42
Interest 12
	152,269.2
Principal 12
	182,388.11
Balance 12
	15,044,532.32
Year 1 Only – Interest
	1,942,567.54
Year 1 – Cumulative Interest
	1,942,567.54
Interest 13
	150,445.32
Principal 13
	184,211.99
Balance 13
	14,860,320.33
Interest 14
	148,603.2
Principal 14
	186,054.11
Balance 14
	14,674,266.22
Interest 15
	146,742.66
Principal 15
	187,914.65
Balance 15
	14,486,351.58
Interest 16
	144,863.52
Principal 16
	189,793.79
Balance 16
	14,296,557.78
Interest 17
	142,965.58
Principal 17
	191,691.73
Balance 17
	14,104,866.05
Interest 18
	141,048.66
Principal 18
	193,608.65
Balance 18
	13,911,257.4
Interest 19
	139,112.57
Principal 19
	195,544.74
Balance 19
	13,715,712.66
Interest 20
	137,157.13
Principal 20
	197,500.18
Balance 20
	13,518,212.48
Interest 21
	135,182.12
Principal 21
	199,475.19
Balance 21
	13,318,737.29
Interest 22
	133,187.37
Principal 22
	201,469.94
Balance 22
	12,913,782.72
Interest 23
	129,137.83
Principal 23
	205,519.48
Balance 23
	12,913,782.72
Interest 24
	129,137.83
Principal 24
	205,519.48
Balance 24
	12,708,263.24
Year 2 Only – Interest
	1,677,583.79
Year 2 – Cumulative Interest
	3,620,151.33
Interest 25
	127,082.63
Principal 25
	207,574.68
Balance 25
	12,500,688.56
Interest 26
	125,006.89
Principal 26
	209,650.42
Balance 26
	12,291,038.14
Interest 27
	122,910.38
Principal 27
	211,746.93
Balance 27
	12,079,291.21
Interest 28
	120,792.91
Principal 28
	213,864.4
Balance 28
	11,865,426.81
Interest 29
	118,654.27
Principal 29
	216,003.04
Balance 29
	11,649,423.77
Interest 30
	116,494.24
Principal 30
	218,163.07
Balance 30
	11,431,260.7
Interest 31
	114,312.61
Principal 31
	220,344.7
Balance 31
	11,210,915.99
Interest 32
	112,109.16
Principal 32
	222,548.15
Balance 32
	10,988,367.84
Interest 33
	109,883.68
Principal 33
	224,773.63
Balance 33
	10,763,594.21
Interest 34
	107,635.94
Principal 34
	227,021.37
Balance 34
	10,536,572.84
Interest 35
	105,365.73
Principal 35
	229,291.58
Balance 35
	10,307,281.26
Interest 36
	103,072.81
Principal 36
	231,584.5
Balance 36
	10,075,696.76
Year 3 Only – Interest
	1,383,321.25
Year 3 – Cumulative Interest
	5,003,472.58
Interest 37
	100,756.97
Principal 37
	233,900.34
Balance 37
	9,841,796.42
Interest 38
	98,417.96
Principal 38
	236,239.35
Balance 38
	9,605,557.08
Interest 39
	96,055.57
Principal 39
	238,601.74
Balance 39
	9,366,955.34
Interest 40
	93,669.55
Principal 40
	240,987.76
Balance 40
	9,125,967.58
Interest 41
	91,259.68
Principal 41
	243,397.63
Balance 41
	8,882,569.95
Interest 42
	88,825.7
Principal 42
	245,831.61
Balance 42
	8,636,738.34
Interest 43
	86,367.38
Principal 43
	248,289.93
Balance 43
	8,388,448.41
Interest 44
	83,884.48
Principal 44
	250,772.83
Balance 44
	8,137,675.58
Interest 45
	81,376.76
Principal 45
	253,280.55
Balance 45
	7,884,395.03
Interest 46
	78,843.95
Principal 46
	255,813.36
Balance 46
	7,628,581.67
Interest 47
	76,285.82
Principal 47
	258,371.49
Balance 47
	7,370,210.18
Interest 48
	73,702.1
Principal 48
	260,955.21
Balance 48
	7,109,254.97
Year 4 Only – Interest
	1,049,445.92
Year 4 – Cumulative Interest
	6,052,918.5
Interest 49
	71,092.55
Principal 49
	263,564.76
Balance 49
	6,845,690.21
Interest 50
	68,456.9
Principal 50
	266,200.41
Balance 50
	6,579,489.8
Interest 51
	65,794.9
Principal 51
	268,862.41
Balance 51
	6,310,627.39
Interest 52
	63,106.27
Principal 52
	271,551.04
Balance 52
	6,039,076.35
Interest 53
	60,390.76
Principal 53
	274,266.55
Balance 53
	5,764,809.8
Interest 54
	57,648.1
Principal 54
	277,009.21
Balance 54
	5,487,800.59
Interest 55
	54,878.01
Principal 55
	279,779.3
Balance 55
	5,208,021.29
Interest 56
	52,080.21
Principal 56
	282,577.1
Balance 56
	4,925,444.19
Interest 57
	49,254.44
Principal 57
	285,402.87
Balance 57
	4,640,041.32
Interest 58
	46,400.41
Principal 58
	288,256.9
Balance 58
	4,351,784.43
Interest 59
	43,517.84
Principal 59
	291,139.47
Balance 59
	4,060,644.96
Interest 60
	40,606.45
Principal 60
	294,050.86
Balance 60
	3,766,594.1
Year 5 Only – Interest
	673,226.84
Year 5 – Cumulative Interest
	6,726,145.34
Interest 61
	37,665.94
Principal 61
	296,991.37
Balance 61
	3,469,602.73
Interest 62
	34,696.03
Principal 62
	299,961.28
Balance 62
	3,169,641.45
Interest 63
	31,696.41
Principal 63
	302,960.9
Balance 63
	2,866,680.55
Interest 64
	28,666.81
Principal 64
	305,990.5
Balance 64
	2,560,690.05
Interest 65
	25,606.9
Principal 65
	309,050.41
Balance 65
	2,251,639.64
Interest 66
	22,516.4
Principal 66
	312,140.91
Balance 66
	1,939,498.73
Interest 67
	19,394.99
Principal 67
	315,262.32
Balance 67
	1,624,236.4
Interest 68
	16,242.36
Principal 68
	318,414.95
Balance 68
	1,305,821.46
Interest 69
	13,058.21
Principal 69
	321,599.1
Balance 69
	984,222.36
Interest 70
	9,842.22
Principal 70
	324,815.09
Balance 70
	659,407.28
Interest 71
	6,594.07
Principal 71
	328,063.24
Balance 71
	331,344.04
Interest 72
	3,313.44
Principal 72
	331,343.87
Balance 72
	0.17
Year 6 Only – Interest
	249,293.78
Year 6 – Cumulative Interest
	6,975,439.12
Currency Symbol (Abbreviated)
	Rs.

BROILER PRODUCTION

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

Rearing System & Frequency of Broiler Sales
	(Multiple 4+1) Fortnightly (Once Every 2 Weeks)
Batch Size of Broiler Birds
	2,500
Expected Bird Mortality Per Batch
	125
Key Broiler Production Inputs
Cost per Broiler Chick
	35
Broiler Meat Price per KG
	75
Average Marketable Broiler Weight (kg)
	2.952
Rest Period
	2 Weeks
Broiler Chicks Cost
TOTAL: Broiler Chick Cost (Year 1)
	2,940,000
TOTAL: Broiler Chick Cost (Year 2)
	2,940,000
TOTAL: Broiler Chick Cost (Year 3)
	3,031,875
TOTAL: Broiler Chick Cost (Year 4)
	2,940,000
TOTAL: Broiler Chick Cost (Year 5)
	3,031,875
TOTAL: Broiler Chick Cost (Year 6)
	2,940,000
Broiler Production
TOTAL: Broiler Birds Produced (Year 1)
	76,125
TOTAL: Broiler Birds Produced (Year 2)
	86,625
TOTAL: Broiler Birds Produced (Year 3)
	84,000
TOTAL: Broiler Birds Produced (Year 4)
	86,625
TOTAL: Broiler Birds Produced (Year 5)
	84,000
TOTAL: Broiler Birds Produced (Year 6)
	86,625
Carcass Weight
Carcass Yield (%)
	68.8
TOTAL: Broiler Carcass Weight Produced in KG (Year 1)
	154,608.05
TOTAL: Broiler Carcass Weight Produced in KG (Year 2)
	175,933.3
TOTAL: Broiler Carcass Weight Produced in KG (Year 3)
	170,601.98
TOTAL: Broiler Carcass Weight Produced in KG (Year 4)
	175,933.3
TOTAL: Broiler Carcass Weight Produced in KG (Year 5)
	170,601.98
TOTAL: Broiler Carcass Weight Produced in KG (Year 6)
	175,933.3
Broiler Sales Revenue
TOTAL: Broiler Sales Revenue (Year 1)
	11,595,603.75
TOTAL: Broiler Sales Revenue (Year 2)
	13,194,997.5
TOTAL: Broiler Sales Revenue (Year 3)
	12,795,148.5
TOTAL: Broiler Sales Revenue (Year 4)
	13,194,997.5
TOTAL: Broiler Sales Revenue (Year 5)
	12,795,148.5
TOTAL: Broiler Sales Revenue (Year 6)
	13,194,997.5
Currency Symbol (Abbreviated)
	Rs.

BROILER MANURE PRODUCTION

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

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

GUNNY BAG RESALE REVENUE

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

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

BROILER FARM SALES REVENUE

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

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

DISCOUNTED CASH FLOW

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

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

BENEFIT-COST RATIO

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

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

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

Well, whether good or bad – it is honest.

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

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

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

Nil ROI.

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

But why?

(Good question.)

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

So nothing revealing there…

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

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

4+1 vs. AIAO broiler rearing model comparison

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

4+1 = better cash flow

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

In fact,

By adopting this model,

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

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

4+1 requires more capital

However,

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

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

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

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

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

There’s actually quite a bit of duplication involved.

Which presents an inconvenience to bird keepers too.

4+1 = higher operational expense

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

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

Activities like:

• catch
• bird transit
• house cleaning
• processing set-up

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

Is there room for improvement?

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

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

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

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

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

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

Broiler Farming Project – Discounted Cash Flows

Discounted Cash Flow (Year 1)

-5,381,571.98

Discounted Cash Flow (Year 2)

-532,897.37

Discounted Cash Flow (Year 3)

-605,263.93

Discounted Cash Flow (Year 4)

-28,206.1

Discounted Cash Flow (Year 5)

-80,519.56

Discounted Cash Flow (Year 6)

388,642.11

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

What caused this?

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

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

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

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

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

Suggested profit tweaks

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

1. reducing the broiler house construction cost (perhaps using your in-house resource)
2. cheaper feed cost
3. cheaper chick cost
4. more ‘margin money’, less loan
5. government subsidy
6. more meat revenue
7. more manure revenue
8. more gunny bag revenue
9. add broiler by-product revenue

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

Discrepancies

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

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

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

Omissions

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

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

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

Here are some of them:

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

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

I would have included them in my report,

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

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

Now, over to you…

Are you currently working on a broiler farm project report?

Have you produced project reports before?

Have I missed something out?

I’d be interested to hear from you.

Leave me a comment below.