Comparative Cost Of Poultry Production, Broilers, Layers, Slaughter House, Cold room, Blast Freezer & Hatchery Unit.

This is a subject of big concern considering the fact that I get calls regularly on enquiry as regards poultry production centered on the Layers aspect as much as a lot of people and prospective persons have eyes on the prospects or precedes from the egg production. To me its like 88% of people tend to buy layers ideas thereby relegating broilers production as if it were a taboo or a sacrilegious venture. But the fact and the truth that a lot of people dont know is that broiler production is by far more cost efficient enveloped with 3 times better prospect than layers as a lot would always cook up the excuse that broilers production in Nigeria is more of a seasonal stock.

I dont know the Professor, The class room lecturer nor the Superlative Agronomist or consultant that might have share with you that obscured view. To really find out the answer and truth to this seemingly and endlessly befuddling question, a detailed outlook into the blue chip players in poultry industry will give you a detailed expository into this delicate and dicey venture, because a little less or a little more can dig an irrefutable hole in your balance sheet as a lot of people have spent years paying back debt or loss they have incurred in this venture. This article is not to scare people from this venture but to ensure you have all your head light remodified into led light to advance and actualise your course in this dimension.

Considering that broilers eat 5 times less than your budget for Layers feed in a month, surprisingly 1000 birds will feed on 30 bags per month and 60 bags in matter of just 2 months to have your broiler gain the weight of 3.2 Kg at 8 weeks while your 16 weeks old Point of lay will consume nothing less than 150 bags per month. Noting that every bird from day old need to feed on 23 grams extra every 7 days interval as a day old from day 1 to day 7 needs just 23grams of feed per day or 1/5th of its body mass, and for every extra week its a plus 23 grams added grams per week while for your layers at 16 weeks old layers point of lay must consume nothing less than 368 grams of feed per day meaning, 200 will surely finish a bag per day and 1000 will surely finish 368kg per day or 14 bags per day, but the ideal and more cost effective ways is to keep your budget for 1000 layers is at 5 bags per day which will translates to 1/12 of its body mass for a recommended economic feed ratio per day. However you must feed your birds both layers and broilers 5 to 6 times a day for best result and at night you must have proper lighting facilities for heat and brooding especially for your day old broilers and for fast growth as more lights means more time to feed on just as we humans need nothing less nor more than 1/8 of our body mass per day as food for cell regeneration especially among the growing kids and the same is recommended for adults to include your fruits and vegetables and water.

So as not to deviate from the objective of this subject, here is quick summary of the comparative cost of broiler and layers production farm unit.


COMPARATIVE COST OF BROILERS TO LAYERS POULTRY PRODUCTION IN NIGERIA:

Broilers Production Cost for 1,000 birds

Pen Construction Cost: Considering that 1 broiler will be housed in a 1.3 Per Sq ft
Therefore 1.3x1,000 broilers= 1300÷70ft = 18ft, Therefore the spacing required for 1,000 broilers = 70ft x 19ft.
The poultry Pen is to include feed store house and an optional admin block and restroom at a cost of #2,800,000 if haphazardly put up, you will only spend #1.8 million so its optional

Poultry feeding tray for 1,000 birds = #90,000 (Optional as we also have the feeding tray for #300 naira per 10 day old birds or #400 naira per 5 grow out birds.
as 20 units is needed at #4,500 per one and 50 birds will use 1 on average.

Drinker dish Also (20 sets) or nipple drinker = #90,000 (Optional ) as we also have #300 naira per drinker for 10 day old chick or #400 per 5 grow out birds.
Purchase of broiler birds at #200 or #250 per bird at peak period = #250x1000= #250,000
Transport from my place to the western part of Nigeria is #50,000 naira but to the eastern and southern part of Nigeria is #80,000
Feed for 2 months or for 8 weeks at starter feed cost of #4,200 per bag as #4,200 x 60 bags = #252,000 naira
Drugs, Vaccines, Antibiotics, Deworming and Feed Additives = #350,000
Contingencies, Laboured, Staffs and Salaries = #150,000 (optional)
Bus or Pick up for Broiler birds dispatch at market point = #850,000 or #1,500,000 (Optional)
TOTAL COST = #3,870,000 or #4,770,000 naira. Anything for broilers Production less than these figures will result in big trouble and loss for you with plenty of how had I know.

RETURN ON INVESTMENT (ROI)

However, a standard and well coordinated Poultry Venture is not short term project for you to recoup or recuperate your venture capital plus interest as it is a long term or medium term project and therefore requires capital in such order.
If 1,000 broiler birds of between 3.2kg to 3.8kg raised in 8weeks to 10 weeks and ideal for #4,500 naira is sold at #3,200 naira per bird that is #3,200x1,000 = #3,200,000 for every 2 months and in 3 production cycle of within 8 months, it would be 3,200,000 x 3 = #9,600,000 - Initial Capital of #3,870,000 (- interest rate if borrowed from bank )= ≤#5,730,000 naira for a duration of 8 months.
So this is a business of slow and steady wins the race.

NOTE: the cost above does not include the cost of a cold room nor the cost of a gen sets to finish your broiler production and for frozen food supply at an extra cost of #8,000,000 naira for a cold room of between 15x10ft and also 20ft by 12ft to include gen

For those who planed to start small with a budget of #75,000 naira you can raise 100 broiler birds in your compound for 2 months with 6 bags required to feed them to maturity and provided your neighbour dont write a petition to the environmental protection agency and to your land lord to effect your eviction due to the fear from poultry waste.

FOR LAYERS PRODUCTION:

Poultry Pen cost = #2,700,000
9 Units of Battery Cage = #810,000
Purchase of 1,000 Point of cage at 16 weeks at #1,450 naira = #1,450,000
Cost of feeding at 5 bags per day at #4,200 naira per bag x 150 bags = #630,000 per month
Drugs, Vaccines, Antibiotics, Deworming & Feed Additives = #350,000
Contingencies for Salaries, labourers and staffs = #200,000 (Optional)
Bus For egg dispatch at #850,000 or at #1,200,000 (mandatory)

TOTAL COST = #5,979,955 or at #7,385,000 naira. Please if you dont have up to this amount, dont make the mistake of going near Poultry layers or egg production business because you will surely bite your tongue.

RETURN ON INVESTMENT (ROI)
Using the above average estimated capital of #7,385,000, we must calculate the sales of Layer birds at the end of 8 months using the figure of #2,000 per bird of 2.5kg on average of 1,000 + the daily returns on egg sales for 8 months - (minus) the monthly cost of feed for 7 months excluding the kick of months feed and also - the #7,385,000 in just 8 months - (Minus) Bank Interest if Capital were sourced from Bank. Therefore here goes the calculation

#2,000 x 1000= #2,000,000 + daily returns on egg crates for 8 months= (with 30 crates on average per day x#850 per crate from farm.) #25,500 naira per day x 30 days = #765,000 from egg sales per month x 8 months = #6,120,000 from egg sales in 8 months + #2,000,000 from sales of spent layers after 8 months = #8,120,000 - (#630,000x7= #4,410,000)monthly cost of feed for 7 months therefore #8,120,000 - (#4,4100,000 + #7,385,000) Or #11,795,000= that is at 8 Months, you are still struggling with a debt or deficit of ( -#3,675,000) naira which may take you another 4 operating months or a total of 12 good months to balance your debt and deficit and you may not come out of it except you up your operating cost as you will however you try need to run into debt to feed the Birds.

In a general business and commercial term and world, this is called *"filling the basket with water*" Satire or tragedy.

Except you are into a mega farm producing your poultry feed, you may never come out of the mess and need to always provide the feed outside and above your budget and running cost designated for the project In poultry business.

Most people are not aware of this rosy, but dicey, endless cycle of pain and inviting but sour pathway and plight of layers business. Go and ask all the big players and big names into poultry and layer production business and some who have been practicing poultry for over 30years, why most have packed up after 12 months of venturing into layer and egg production business and for the few that survived, after 30years of biting experience, why have they resolved to just go the humble broiler ways? its because a lot of people wants to get their balance sheets and accounts book right after 2 to 3 months of broiler production sales.

Its not that you won't make profit in Layers production if you are not into big time egg production business of at least a poultry capacity stocks of about 250,000 layer birds, but the truth is that the chances are by far too slim that you will survive in poultry business as an honest player in the sector except you are ready to cut a lot and a great deal of corners in your running cost as 95% of your profit will always end up in feed as 97% of persons in the egg production field are often forced, compelled or grounded to an absolute halt do to the very slim chances of survival in the egg production business however you tried to cut corners. So before you do layers business you need to ask yourself a big question if you are ready to throw away money or run a Charity venture.

Layer and egg production in the poultry business is so demanding that before you can make a tangible *"Return On Investment"* to evade *"the grinding fist"* of feed cost, it will take you a minimum of between 16months to 20 months of productive cycle before you can boast of a sigh of relieve and that can only be an headway if you know how to cut feeding cost and operating cost to the nearest minimal.
The major concern in the layer and egg production business is the big heart to embrace 95% of your profit to be forfeited to feed provision. This is exactly why most egg production business dont last 2years or 24 months of active production after kick off.

Wether Broilers or layers am sure you now have a better comparative insight of which of this venture to go into.
Broiler production is good if you already have the market for egg production but the only setback here is the cost of feed, for those who want to cut the grinding and neck cutting cost of feed from #4,250 to as low as between #2,000 to #3,500 naira per bag of feed and yet still get an appreciable egg production all year round, you can reach me via my contact lines and address. Note that before you commit a kobo into any farming venture be it livestock or crop production it is advisable you seek at least 5 different expert advice before you eventually resolve on what to do even if you think you know exactly what you want as nobody wants to gamble with his or her resources nor throw money into fire nor an experimental agric project without an insurance cover! Its more like been penny wise, pounds foolish!

BRIEF OF PROJECT FINANCIAL COST AT A GLANCE:
The Proposal Must Include The Following:

1.Land & Site Development Expenses, 2.Buildings, 3.Plant & Machinery With Other Fixed Assets 4.Motor Vehicle, 5.Office And Farm site or production unit Automation, 6.Equipments, 7.Technical Know how fees, 8.Franchise & Other Deposits, 9.Preliminary & Operative Expenses, 10.Provision For Contingencies, 11.Margin Money-Working Capital

MEANS OF FINANCE:
1.Capital 2.Share Premium, 3.Other Type of Share Capital, 4.Reserves & Surplus, 5.Cash Subsidy, 6.Internal Cash Accruals, 7.Long or Medium term Borrowing, 8.Debentures.

PART OF BUSINESS PLAN OVERVIEW & CONTENTS:

1. INTRODUCTION,
1.1.Project Brief, 1.2.Opportunity Rationale, 1.3Total Project Cost, 1.4, Proposal Capacity,

2.CURRENT INDUSTRY STRUCTURE
2.1Meat & Egg Production (Charts)
2.2Broiler & Layers Population & Market Output (Charts)
2.3 Comparative Efficiency Of Environmental Control House (ECH)
2.4. Conventional Open Side House (COH)

3.MARKETING

4.1.FARM MANAGEMENT
4.2. PROPOSED CONTROLLED POULTRY FARM,
5.PRODUCTS
6.MANPOWER REQUIREMENTS
7.TECHNOLOGY

Are you losing livestock on your farm, be it poultry, fishery, piggery or you are not getting result or yield as expected or you are spending way too much than expected for livestock or farm management or you need a one time feed solution, Agro business proposal or plan to execute a succinct agro project?? Call Adewale your farm Doctor on +2348141208884. Zion Joe Ventures. Suite 9 Olutayo, Shopping Complex, By Bicket Bus stop, Oshogbo, Osun State, Nigeria. https://www.greenharrisburg..com

Pls can u help us break the 75000 Naira cost of raising 100 broilers down. Please.

Pls, how much?
It is very urgent.
I mean for the complete package, a fully integrated farm.
ASAP.
Thanks.