Sample Layer Farm Overheads

Layer Farm Operational Costs

How important is it to present your overheads related to your poultry farming project?

As overheads are recurring costs, if you get them wrong once – you pay for it many times over in the future.

Ongoing financial prudence impacts cash flow (available cash) and of course profitability (how much you hope your project will pay you back in earnings).

The key to getting this part right is acquiring accurate service quotes here from your locality.

Accurate costings are a critical part of running a successful poultry farm project.

Let’s add a little background to the cost categories highlighted above…

(*We don’t endorse any professional service providers quoted within. We have associated with their web pages simply for the academic purpose of assisting you in your theoretical desk study.)

Medicines & Vet –

• Maintaining a healthy flock is critical to preserving your expected profits.
• The risk of sickness to your birds is a very real financial threat.
• More bird deaths = less productivity = less sales revenue = less profit.
• Whilst diligent, preventative care is the key deterrent for outbreaks of disease, it is generally accepted to preemptively attack potential issues with a course of medicines.
  • Further reading:
    • Poultry Farming Health Management – The Poultry Hub

Livestock Insurance –

• Insuring your livestock against unforeseen loss with an insurance policy might be your idea of hedging against this potential financial risk.
  • Further reading:
    • Poultry Insurance – AgriInsurance.com

Building Insurance –

• Buildings and contents insurance may offer peace of mind against any adverse circumstances such as theft, for example. This cost is estimated in the table above within this example.
  • Further reading:
    • Poultry Building Insurance – Live Oak Bank

Electrification –

• Lighting and use of other electrical appliances will place a demand upon your infrastructure for electricity. In this section you want to declare your expected electrical services expenditure.
  • Further reading:
    • Energy Costs Associated with Commercial Broiler Production – The Poultry Site

Water –

• Your poultry farming project will require a consistent supply of clean water to keep your flock hydrated in all weather and conditions. If there are associated local authority costs or provider costs, then insert them here.
  • Further reading:
    • Broiler Water Consumption – The Poultry Site

Poultry Farm Labour –

• Your birds will require constant hands-on care to produce the kind of results that your project report estimate. Reliable, experienced handlers and farm labourers will increase your chances of achieving your business goals. Account for staff costs here.
  • Further reading:
    • An Assessment of the Potential Profitability of Poultry Farms – University of Tennessee

Transport –

• Transporting your produce to market is the delivery end of your poultry farming enterprise. This is where all the hard work should pay off. Every penny counts within your the contribution to your profit margin. Don’t fall short of producing an accurate and itemised cost for transporting eggs or meat to market.
  • Further reading:
    • Poultry Handling and Transportation Manual – Poultry Service Association

Maintenance –

• Keeping buildings, equipment and ground maintained provides optimal conditions for a more productive poultry farm. The cost of maintaining your farm is detailed here.
  • Further reading:
    • Cleaning & Disinfecting Your Poultry Farm – Cornell University

Miscellaneous –

•  Exactly that! Anything that doesn’t fit in above goes right here.

Further reading:

• Poultry Farm Business Summary – Cornell University