The Big Book Project

Agribusiness Training & Startup Tools

The Ultimate Business Guide To Poultry Farming

Chapter 6 – All-In-All-Out Broilers

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There is a motto which anyone who’s been in the sticks by strongly:

All-In-All-Out (AIAO).

It is better to have moderate income with firmer foundations…

…than to lose it all trying to win big.

Broiler farming is a fixed schedule of investment from chick to target weight.

Typically, , depending on breed, e.g. .

With a fixed number of weeks in the year, running sequential batches of broiler back to back…

…(With a week or two in between to sanitize the house)…

…leads to only so many potential cycles of earnings per year (6-8 cycles or batches).

Sure,

You could always increase batch size to grow, but with batches running in sequence –

In other words, one after another, you physically cannot turn over more cycles in a certain window of time.

But are there options for growth outside of increasing batch size?

Can a broiler farmer multiply earnings by tweaking the model somehow?

The short answer is, yes.

can accommodate simultaneous batches being reared on the same farm.

The advantages?

Take a look:

The image below shows the 4+1 model which involves having 4 occupied houses and 1 spare house available.

With this system, once in full flow – 3 batches in,

…you can expect to sell meat at market 3 times per month – instead of once every 2 months…approximately 6x the productivity of All In All Out.

caption for image

Another model of broiler rearing is 8+2.

This model involves erecting 8 houses and having 2 spare.

This is how that system would practically work:

caption for image

With the 8+2 system, you would stand to appear at market 6 consecutive weeks in a row.

Does all this additional productivity sound good to you?

And so it should.

However, there is a SERIOUS drawback.

Don’t just take my word for it…

Here is a blog comment from Ahmed Atef (seasoned broiler farmer and full-time poultry advisor to the Egyptian Agricultural Authorities):

caption for image

Source:

The high risk of cross-infection from multi-batch broiler rearing models is very REAL.

So much so, that broiler farmers worldwide almost unanimously back All-In-All-Out.

What is All-In-All-Out?

It is what it sounds like.

One batch at a time reared on the farm

NEVER rearing more than one batch at a time on-site.

This way you never expose your flocks to pathogenic threats that they are not used to.

This is a more biosecure means of protecting your farming profits.

An outbreak is always a very real risk at a broiler farm.

Birds will naturally carry viral and bacterial threats.

But their collective immunity typically is able to handle what they have already been exposed to.

It’s foreign exposure that puts stress on their bodies to respond.

Even with the best on-site hygiene and sanitary practices…

…it is almost impossible to entirely block cross-contamination between flocks.

It is highly likely there will be bacterial or viral transfer.

At such a young & impressionable age, the added challenge can seriously knock your flock out of sync.

This can lead to mortality or force you to cull for the preservation of the majority.

A loss is almost certain.

Plus, a lengthy post-clean down operation to avoid new arrivals getting hit too.

The bottom line…

All-In-All-Out is the solution.

It has a moderating effect for both broiler biosecurity, but also scale/income.

A prudent measure for any farmer who wants to maintain their long term investment prospects.

And now, over to you:

Have you suffered broiler farm disease outbreaks before?

Is All-In-All-Out your solution to the biosecurity problem?

is your broiler business doing well with multiple flocks regardless?

Or, are you new to this and are unsure about some of the principles?

Whatever it is, write me back and let me know.

I read every comment.

Speak soon,

Temi

Chapter 5 – Deep Litter Calculator

Last updated on by Temi Cole Leave a Comment

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Hello,

​

I was recently for a poultry farm project,

and got STUCK…

​

Here’s what did it:

​

“How do I accurately calculate the cost of deep litter?”

​

When writing a project report or proposal, so much of what comes out at the ‘business end’ of things relies on SOLID inputs.

‘For reliable results, you have to get granular on detail.’

(That’s right, every single grain of matter…really does matter.)

​

In some limited cases, a ballpark figure will do.

Take office consumables, for example printer cartridges, paper, pencils etc.

Even, larger one-off capital purchases are concerned: a van, for example, can be estimated loosely without MAJOR accounting risk.

But where the cost implication is:

  • operationally significant
  • recurring
  • large scale
  • highly variable
  • has production model dependencies
  • quite a technical calculation

…(as in the case of deep litter), you need to be SURE you are getting things right.

​

So rather than just plug in some ‘back of an envelope’ long-shot,

I decided to work it out by LONG hand.

​

But to save you the hassle, I just published my findings in this .

​

Here’s a step-by-step summary of how it all works.

​​

*I highly recommend the read, it will no doubt help you save time and error whilst calculating your deep litter costs.

(Also included in this detailed tutorial is an example calculation, plus a spreadsheet and online calculator.)

​

And now over to you…

Are you currently working out the deep litter costs for your project plan?

Are you already farming and want to compare the costs of alternative litter material?

​

Either way, I’d be interested to hear your thoughts.

I read every comment.

​

Speak soon,

Temi

​

P.S. If you want to learn more advanced techniques for improving your poultry farming profits,

I recommend you joining my new premium newsletter, Advanced Poultry Pickup.

Yes, it has tons of actionable strategies (like the one above).

But more important than that, Advanced Poultry Pickup is a step-by-step blueprint to help you develop a profitable poultry farming business in record time.

​

Chapter 4 – Calculating Floor Space

Last updated on by Temi Cole Leave a Comment

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Hello,

How many do you need…?

And what floor space dimensions will work best?

This is a critical step in layer farm planning.

As poultry house construction is a considerable one-off capital cost, you’ll want your estimate to be precise.

Floor space for your birds directly relates to flock density.

And flock density MASSIVELY influences flock wellbeing, also profitability (through feed conversion).

Source:

The study above suggests that there are significant economies to be gained from getting floor space right.

This factor seems to directly impact birds’ ability to feed.

And also affects their conversion of feed into eggs.

Sure it costs you to provide space, but in the long run, it will return profits back to your business.

  • But how much space is enough per bird?
  • And what about space requirement for the various stages of development?
    • i.e. brooder, grower or layer?
  • Also, how much total housing floor space will you need for your desired scale?

This is why I produced…

It answers questions like,

caption for image

Or,

caption for image

It’s automatic, accurate, simple to use and even emails you the results!

I based the figures on the best practice advice in the FAO guidebook on Good Poultry Farming Management.

caption for image

caption for image

Source:

Note: the figures above are based on a hot south Asian climate. (Want conversion from metric/imperial to Bigha? .)

It is advised flocks require more space in warmer temperatures to maintain a good balance.

The bottom line…

If you are in the process of planning how much floor space you need for a new layer house build…

Why not ? ()

But now, I’d like to hear from you:

Have you already tried the calculator?

Are you planning house dimensions for your flock (and need some guidance)?

Either way, write me back and let me know.

I read every comment.

Speak soon.

Temi

Chapter 3 – Land Farm Decisions

Last updated on by Temi Cole 1 Comment

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Land is the most fundamental asset for any agribusiness.

You can do nothing without it.

It accommodates the entire enterprise. Through it, you play host to livestock and/or crops.

But land is anything but homogenous. It varies wildly.

Neither is the particular demand for land identical from farm to farm.

Even within niches, like poultry (for example), the need for certain types of land features is very different.

Demand for land depends on:

  • Scale of production
  • Breed
  • Climate
  • Locality
  • Logistical connectivity
  • Amenity etc.

Land also underpins the long term nature of your agribusiness investment.

Once planted, to uproot your venture before harvest would be to forfeit a whole season (cycle) of productivity and gain.

What a loss!

Making the right call on where to site your farm is key.

  • Do you have a secure arrangement with a landlord?
  • Are there planning covenants preventing your future expansion?
  • Will you incur the opposition of neighbours due to pollution (noise, air, water etc.)?

Also, when it comes to land investment…

…the BIG question often is can you afford it?

The next question after this is, will it be worth it in the long run?

The first place to look is at what is already in your hand.

Sure –

…you may have a vision which is MUCH bigger than what your current dwelling could host in the near time…

But there is great virtue in starting small and growing slow.

Here’s what I mean:

Take this scenario…

Say you have the vision to own a 1,000 broiler poultry farm.

With an approximate floor space requirement per bird of 1sq.ft. (at 1,750g in weight),

You calculate the broiler house to be 1,000 sq.ft. (1/40th of an acre) minimum.

You hope to double this capacity (2,000 broilers) not before too long though.

When you add room for storage, an incinerator, civil buildings, feed and water silos, parking etc.

You figure you might need even ⅓ acre to give room for growth up to about 4,000 broilers within 6 years.

You live on a small residential property with about 200 sq.ft. of spare land.

Nowhere near big enough for your 6-year plans – but big enough for 100 broilers or so.

The question is…

[A]…should you search for a larger property and take a long term loan/mortgage?

[B]…or start small?

This is where benefit-cost analysis comes into it.

Many would advise you in this position to get a loan (so long as you are in the position to pay it back).

In the minds of many, a bigger farm = bigger profit.

Is this true?

Let’s take a look…

A benefit-cost analysis is the professional tool of choice for estimating if a long term project is worth the investment, or not.

  • It helps you decide if your money would be better spent elsewhere.
  • Bank managers and lenders use it.
  • It indicates confidence in a particular business case/proposal.

If it’s good enough for the pros, why not measure your plan by the same yardstick?

With the kind of trade-off above…

i.e. 1000 broiler farm with a mortgage vs. 100 broiler farm without finance…

…you want to see on paper if the plan you have is actually feasible.

This is where a benefit-cost analysis becomes handy…it’s just so simple to read.

Once you’ve plugged in your input numbers, it gives you back a number.

If the resulting number from the analysis is below ‘1’ – then your plan seems to be unfavourable on paper. Your money would be better spent on an equivalent consumer investment product, like a savings account.

If the resulting number is above ‘1’ – it seems your idea could work out the better option.

A result equal to ‘1’ – is breakeven. Nothing gained & nothing lost.

Will the land acquisition become an asset or a liability?

Either way, there are always operational expenses and overheads…

But when you throw the price of land on top,

…does the business still theoretically work out?

Let’s take a look at some detail…

You project the investment of setting-up the farm over 6 years

In other words, you aim to have the farm pay you back with profit within this timescale.

You line up a head-to-head comparison on paper of the decision to buy, to rent or to stick…

Using the benefit-cost analysis you prepare your numbers:

[A] Scenario 1: Buy

The capital expense to buy land is considerable.

But once acquired, affordably – it offers peace of mind and sovereignty that a tenant doesn’t enjoy.

Just imagine if your 6-year plans of growth were cut short by a terminated tenancy agreement…

You decide to write out a plan to see what buying might look like, financially:

You find a price per sq. ft. for agricultural land

And also, you find the conversion ratio between sq.ft. to acres to help in your estimation (~ 1sq. Ft. = 0.00003 acres)

You figure, to accommodate your growth plans you’d need about 0.15 acres (inc. ancillary buildings, plus space for storage, incinerators, road parking etc.).

On the market, there are several plots, many with water & power plugged in.

You factor in the cost of poultry sheds. For the first 3 years, you expect to hold your 1,000 bird flock size – without increasing.

After that, you aim to grow at +1,000 per year, once the demand is sure.

This would give you an eventual building cost for the construction of around 4,000 sq.ft. of poultry housing.

You add equipment costs for brooding, wiring, feeder, drinkers, storage, incinerators etc.

Next, your operational costs, particularly chicks and feed:

In a 52 week year, you expect to turn around about 6 batches.

This would mean your cost of goods sold in a year would amount to 6,000 chicks (at locally available prices).

You estimate your target marketable live weight of bird to be 2kg.

From your research, a feed conversion ratio of 2.3 would mean each bird in each batch would require just under 5kg (4.6kg) of feed to reach the target.

This means your annual feed requirement (for a batch size of 1,000) will be about 29,900kg

When you research local broiler meat prices per kg…

…you now have all you need to run your first benefit-cost analysis for your proposed project.

With all price estimates sourced and calculated, my benefit-cost ratio to buy land for a 1,000 broiler was 1.11…

Meaning on top of what the cost of the endeavour is, you would make an additional 11%.

[B] Scenario 2: Rent

The rent option would be the same again as above, but minus the cost of land purchase (instead, adding the equivalent cost of a rented plot).

The new benefit-cost ratio, when calculated was 1.38

38% return above inflation.

More than 300% times the benefit of land purchase.

However,

…there are caveats (considerations):

#1 when you rent, you forego any potential capital gains on the increasing value of your asset.

#2 when wanting to build improvements onsite, tenants need landlord permission (this may not be granted)

#3 lease arrangements can be dissolved

Etc…

The security you get from owning an asset rather than leasing can sometimes be worth the reduced profit.

[C] Scenario 3: Stick

The third option was setting up a modest 100 broiler operation from your own smallholding.

According to a far more streamlined entry point, the benefit-cost ratio is estimated to be 1.41.

This is the most rewarding option yet (by the proportion of amount invested).

Sure,

…the overall earnings are smaller, but the percentage financial yield is over 40% above inflation.

Sanity vs. vanity.

What are the advantages of starting small and growing affordable?

.

More manageable.

Make your mistakes with lesser consequence.

Learn ‘the ropes’ at a humble level.

Earn and save to buy bigger -without debt!

And now, over to you:

Are you caught in indecision over planning your broiler farm land commitments?

Or, have you already invested and are considering expansion?

Either way, write me back and let me know.

I read every comment.

Speak soon,

Temi

Further reading:

Chapter 2 – Why Write A Business Plan For Your Farm?

Last updated on by Temi Cole 1 Comment

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So,

You are thinking of committing to setting up a farming business.

On your list of things to do,

You’ve got ….

‘Write a business plan.’

But before you jump in with both feet,

Have you asked yourself, “Why?”

It’s worth taking the time to pause…

Writing a business plan takes a lot of time and expertise investment.

Like anything which costs, it’s worth considering BEFORE you begin…

…is this exercise actually going to be worth my time & efforts?

In other words,

Will writing a business plan tangibly pay me back?

Well,

In order to answer this question, you’d need to ask…

What do I expect my business plan to do for me?

In other words,

What is a business plan, really?

In this email, I’m going to help you address what you should expect a business plan to do for you…

…And how to write one that will support you getting off the ground with:

  • maximum support
  • minimum cost

…but be prepared to put in lots of hard work!

A business plan is a form of communication.

A formal and effective way of presenting what you intend to do with a particular business,

And how.

Now,

Because I said formal, that should not be excused for:

  • boring
  • monotonous
  • overly heavy
  • dry
  • academic

(etc.etc….)

You want your business plan to help people see and believe in what is (as yet) a concept.

Its got to:

  • motivate
  • inspire
  • animate
  • illustrate

…and much more.

Your business plan has got to sell.

Your sales career begins here.

What is selling?

If you’ve got making money on your mind here,

Then, you missed the point completely.

Selling is an art.

The art of persuasion.

Not cheap mind manipulation,

…but rather skillfully:

  • enquiring,
  • rationalising and,
  • establishing a common ground, between parties

…to bring about an agreement, also known as, the sale.

But WHO exactly are you selling to when you write your business plan?

Ask yourself rather,

Who are you NOT selling to with your business plan?

Your business ought to be known for its excellence by EVERYONE.

  • Customers
  • Staff
  • Suppliers
  • Lenders
  • Press
  • Local government

Support for grooming your successful business often comes from the most unexpected areas at times.

Why limit your efforts?

Consider getting your prime business plans into the hands of all of the above.

Not in a pushy manner.

But selling relative and relevant value to each group of potential stakeholders.

How?

KYS = Know your stakeholder.

Find out what they actually do and what will help them do more.

For example,

If you are a poultry farmer –

Don’t think of your feed supplier as a grain processor.

Promoting grain processing doesn’t win them any business.

Think about it.

As their customer, are you buying grain?

Or, are you buying

…bags of maximum broiler meat profits?

I know which I’d prefer.

Want to get the most advantageous suppliers to work with you?

Tell them how you intend their product to help you smash your production goals.

Also, suggest ways in which you could assist them in getting this message received by many of your peers.

Be forward-thinking and liberal.

Competition is divisive,

Collaboration multiplies.

Getting the pitch right

Think outcomes.

Many years ago, they used to say, think benefits, not features.

This still holds true.

People want problems solved.

Solved problems save time, hassle and money.

This puts money back in your pocket.

People don’t look to accumulate expenses, but to get paid for their efforts.

Your business should help people get paid for their efforts.

Even B2C (business to consumer) works on this model.

If your chicken meat is poor value, consumers spend more money, time and hassle finding better deals.

You alone benefit.

If it’s good value, however, you are paying them off for their investment in you.

Win-win.

Quantify

Business plans ought to be specific about numbers.

And the numbers should stack up.

In other words,

Readers should be able to follow one data-set or metric to another in a logical process.

No misleading, or misinformation.

Sensible trains of thought going from one stepping stone to another.

Skipping over integral detail breeds mistrust and is counterproductive.

You’ll leave readers thinking,

“…I wonder why he left THAT out?”

Qualify

Back up.

Every strategy needs it. You need votes.

Don’t bribe.

You don’t need to.

Simply share the value you have and pour all of YOU into those early exchanges, with a view to start as you mean to go on.

As you scale, simply strip away administration (with systems) and add more personal interaction.

The more ‘YOU’ in the mix, the more people will connect and be all the more willing to add their weight to your cause.

Very valuable for any scale of business.

For example,

Just think about your favourite blog,

Consider the numbers of comments it attracts.

But then again, also consider the genuine efforts of outreach performed by the author.

Be illustration rich

Illustration is the language of business analysis and reporting.

It’s all about interpretation.

Making business make sense.

Sure,

Data drives decision making, investment and strategic direction.

But unless it makes sense to your audience,

It has all been a wasted exercise.

Selling a business case, or proposal is all about building a bigger picture from blocks.

Each block adding to the integrity and magnitude of the resulting presentation.

The more points of understanding that get through the gate…

…the more support you rally.

Don’t forget to announce a launch date (…with plenty notice)

Planning your business is one thing,

But assisting your potential supporters to plan their provision of help is another.

They need time to set aside any meaningful amount of resource to offer you.

Give them something to aim for, clearly stating when each stage will occur.

This leads your audience to anticipate what you might need from them…

And at what time.

The bottom line…

So, there you have it,

Your business plan is multi-stakeholder investment pitch.

It’s your way of increasing your stock value prior to launch.

Getting commercial and consumer votes in advance of trading.

Such an advantage will lead to a much more prosperous start and sustainable run.

Now over to you…

Are you currently writing a business plan for your farming business?

Have you written business plans before?

What’s your experience?

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

(I read every comment.)

Speak soon,

Temi

Chapter 1 – Advantages Of Layer Poultry Farming

Last updated on by Temi Cole 3 Comments

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Hello,

When considering ,

You may have asked the question,

“Which is better…a or ?”

Well, the answer is: it depends.

[Ok, maybe not exactly what you were looking for. But it’s true.]

On what?

Try:

  • experience
  • demand
  • supplies

…and much more.

But if I were to put my spin on it,

I’d consider layer farming to have some very distinct advantages over broiler farming.

Hear me out…

  • Consistent cash flow
  • No processing
  • Easier delivery
  • Less house cleaning costs
  • Spent hen income

Consistent cash flow

, on average.

By nature, therefore, you have an advantage in that your layer farm will produce marketable product – EVERY day.

As with any product, you’ll want to hand over the goods asap.

Thinking things through, this would mean that your business will bring in sales revenue every day.

Cash coming in daily makes all the difference to keeping on top of expenses…

…and being able to tie up loose financial ends, readily.

There should always be money available in hand put towards something, or other.

No processing

Meat needs processing.

Eggs at most require cleaning, grading, and packaging but nothing anywhere near as intensive as broiler meat.

As such,

The post-production procedure is far less costly with layer farms compared with broiler farms.

Less cost = more profitability.

According to provided by North Carolina State University,

Broiler meat processing fees can amount to as much as 18.6 – 21.6% of the total costs of production.

Still,

For a layer farm you’ll need:

  • Cleaning
  • Weighing
  • Grading
  • Packaging (recurring)
  • Labelling (recurring)
  • Storage

…but, the cost, in the long run, is less with egg preparation than meat with processing.

Transport

Physically delivering product to market is less complicated with eggs, than meat.

Eggs require nothing more than trays/boxes for transporting to customers.

Broiler meat requires refrigeration or the way for delivery.

And if you have used a 3rd party processor/slaughterhouse,

Then getting live birds to lairage also requires cost:

  • Catch
  • Modules
  • Transport
  • Slaughter
  • Evisceration etc.

Eggs don’t require any more doing to them other than packaging and labelling.

No vehicle modification.

No slaughter/ evisceration.

Far less hassle.

Most likely you’ll run deliveries from your mini-van rather than use a logistics partner.

Less house cleaning cost

With layer farming, you’d accommodate the same flock for 70 weeks.

Deep cleaning only once, in between batches.

In the same period of time, an equivalent broiler farmer would have incurred 10x deep clean costs.

A very simple point to make and one for cost consideration.

Spent hen income

At the end of their egg-laying peak of production, layer hens become unprofitable.

At such time they are culled.

Another batch of layer birds is usually waiting in the wings to take the place of your recent end-of-lay batch.

, they possess lower quality meat than standard broilers.

Their meat is usually smaller, lighter, and less tender.

As such, they attract a much lower price than their higher-performing relatives at market.

That said, there IS a market for spent hens.

Taking yours to market will help you recoup further ROI on every egg is sold.

The bottom line…

Layer farming and broiler farming are twinned towns in the agri-sector.

Related, they share similarities, but their differences cannot be denied.

Layer farming has distinct business model advantages that might better suit your expectations.

Consider the business profile of each mode of poultry farming and settle on what works best toward achieving your goals.

And now, I’d like to hear from you:

Are you a former broiler farmer who is looking to switch codes?

Are you new to poultry and want to tread carefully in decision making?

Either way, write me back and let me know.

I read every comment.

Speak soon.

Temi